What is money?
From history, we remember that a long time ago people simply exchanged goods necessary for their life: salt, grains, spices, tools, hunting, etc. Some of these products are valued more, some less. With the development of relations between the various tribes began to emerge some common values - goods that are equally valued in the different tribes.
At various stages of our history, these values have changed, but always had goods that are difficult to get or just make.
Money - is a product through which to evaluate other products or service cost.
Currency
Currency - is an element of the monetary system, the universal unit of value of goods.
Many believe that the currency is the currency notes of another state. But it is not.
Currency - is the currency unit of any state. The ruble is the currency of the same in Russia, and the U.S. dollar or the Japanese yen.
Exchange rate
The forex market is determined by the value of a currency.
The value of a currency depends on economies. Who needs the currency to which you cannot buy anything? That is, if the economy is in decline, the currency would fall in price.
The value of a currency to date shows us exchange rate - the price of the currency of one country expressed in the currency of another.
Exchange rate can be set by the central bank or government - a fixed exchange rate, and be based on supply and demand - a floating exchange rate.
Read more:
- What is a currency pair
if you are familiar with these concepts - boldly go to the first class technical analysis when currencies fall, and when growing
