Harris Worthman, Chapter 11, Question 7

While I was reading chapter 11 of Naked Economics there was about two pages about the importance of the exchange rate between countries. If the correct value of exchanging different currencies is not equal then it is liable to have those that take advantage of the system to make a profit. It is also important to exchange for the right value in another currency because, in one instance, the author, Charles Wheelan, went to China and though he exchanged 100 dollars of his money for what it said it should be exchanged for in his book, he realized his book was outdated and he ended up only receiving about 13 dollars in return. The exchange rate is important not only for the average person but for governments as well. Many governments are afraid that when they receive money from another government that they recently created more money just to pay off their debt. That makes the value of the money they payed them to down.