Essay on United States Dollar and Currency - 630 Words.
Read this essay on Value of a Dollar Bill. Come browse our large digital warehouse of free sample essays.. Money has a consistent, recognized value (although the price of a given currency, say the U.S. dollar or the British pound, may fluctuate relative to other currencies). Standardized value means that a merchant and a consumer will agree.
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The U.S. dollar has been declining in value, becoming less attractive to investors. Nevertheless, the economy of the United States is expected to benefit from the decline of the U.S. dollar. This is because the U.S. is facing a current account deficit, and the declining U.S. dollar would allow the country to increase its exports, thereby allowing it to easily balance its current account.
A depreciation of sterling would occur inside a free-floating currency system and has happened on several occasions in the past most notably in June 2016 when the pound’s external value fell in the immediate aftermath of the Brexit referendum result. The sterling effective exchange rate depreciated 20% between November 2015 and October 2016, including a record 6.5% fall between June and July.
Essay text: Table 1, which can be found in Appendix B, shows the course and relationship of the exchange rates of the two currencies from 1999 until now. The scope of this paper is to approach as best as possible the various reasons for this disparity and try to predict the future of the two currencies based on accurate and up-to-date information.
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