Why is a system for exchanging currencies necessary for international trade?(1 point)

Question

Responses

To control the global money supply
To control the global money supply

To increase trade barriers
To increase trade barriers

To manage price stability and currency risk
To manage price stability and currency risk

To create a universal method for accurate currency exchange
To create a universal method for accurate currency exchange
Question 2
Because countries cannot produce all of the goods/services that it needs, they must(1 point)
Responses

Reduce the need for imports
Reduce the need for imports

Specialize and trade on a global scale
Specialize and trade on a global scale

Eliminate consumption of scarce goods.
Eliminate consumption of scarce goods.

Increase domestic production costs

Answer 1

Increase domestic production costs

Answer 2

what about the answer to question 1?

Answer 3

The correct answer to question 1 is "To manage price stability and currency risk." A system for exchanging currencies is necessary for international trade to ensure that prices remain stable and to manage the risks associated with fluctuating currency values.