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
Increase domestic production costs
Question 3
Which country in Southeast Asia has a higher GDP than the United States due to its specialization in the financial services sector?(1 point)
Responses

Vie…

Answer 1

Here are the answers to your questions based on economic principles:

Question 1: Why is a system for exchanging currencies necessary for international trade?

• Correct Response: To manage price stability and currency risk

Question 2: Because countries cannot produce all of the goods/services that it needs, they must

• Correct Response: Specialize and trade on a global scale

Question 3: Which country in Southeast Asia has a higher GDP than the United States due to its specialization in the financial services sector?

• Correct Response: Singapore

Feel free to ask if you need more information or further explanations!