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View Full Version : The Money Market



nickdlc
18th June 2006, 23:51
How does the money market work and why is one countries currency worth more than anothers?

The best answer i can come up with is that one countries labour power might be worth more than anothers, but i know thats totally wrong! Please help me solve this puzzle.

OneBrickOneVoice
19th June 2006, 02:40
Well it used to be that the national gold or silver reserve backed a currency but now it's more abstract meaning that you can't go to a bank and gold-in your dollar. How do you get more gold? overall business transactions, trade, and profits of corporations and companies in your country.

I think it's something like that but don't quote me on that.