Briefly Explain the Difference Between Freely Convertible, Externally Convertible, and Nonconvertible

question 115

Essay

Briefly explain the difference between freely convertible, externally convertible, and nonconvertible currency.

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Definitions:

Increase

An upward movement in quantity, price, or value.

Increase in Supply

A situation where the quantity of a good or service that producers are willing to supply at a given price rises.

Increase in Demand

A situation where consumers are willing and able to purchase more of a good or service at each possible price, often depicted by a rightward shift in the demand curve.

Decrease

A reduction in size, number, value, or extent.