Question

In at least two complete sentences, explain why a traveler will need to visit a currency exchange. Include how exchange rates are determined.

Answer 1

It is necessary for a traveler to visit the currency exchange, if he/she is traveling to foreign countries. The currency of his country is exchanged against the currency to which it is pegged.

The exchange rate of the currency can be determined in two ways: fixed rate and floating rate.  

Explanation:

The currency exchange is a business that has the legal right to exchange the currency of one country with the currency of another country. This type of business is known as foreign exchange market.

It is necessary for a traveler to visit the currency exchange, if he/she is traveling to foreign countries. Each and every country has unique currency system. It is necessary to get the currency of the country we are visiting.

The exchange rate of the currency can be determined in two ways: fixed rate and floating rate.

The exchange rate of the currency is decided by the government based on the market force and geopolitical condition.