sgvc

Classified in Economy

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Exchange rates --> The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another.

Floating and Fixed exchanged rates --> There are two ways the price of a currency can be determined against another.
The EURO --> is the single currency shared by the European Union's Member States, which together make up the euro area.
The Money --> is a good thet acts as a medium of exchange in transactions.
Purchasing Power Parity (PPP) --> is a theory in economics that approximates the total adjustment that must be made on the currency exchange rate between countries that allows the exchange to be equal to the purchasing power of each country's currency.
E=P/Pex
E=Unidades de monera nacional necesarias para adquirir 1 unidad de moneda extrangera.
P=Precio de los bienes en el país nacional.
Pex=Precio de los bienes en el país extranjero.

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