When did the U.S. start using paper money?

July 7, 2024 No Comments

A: On February 3, 1690, the Massachusetts Bay Colony was said to have issued the first paper money in the U.S. in order to pay for military action against Canada during King William’s War. Massachusetts was a truly pioneering colony when it came to money, as

Where is the central location of the forex market?

July 7, 2024 No Comments

A: There is no central location of the foreign exchange market, often referred to as the forex (FX) market. Transactions in the FX market take place in many different forms, 24 hours a day, through different channels all over the globe; existing wherever one currency

Is there a world currency? If so, what is it?

July 7, 2024 No Comments

A: T here is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar. At one time, all currencies were backed by gold, meaning that every country had to hold

What is foreign exchange?

July 7, 2024 No Comments

A: Foreign exchange, or forex, is the conversion of one country’s currency into another. In a free economy, a country’s currency is valued according to the laws of supply and demand. In other words, a currency’s value can be pegged to another country’s currency, such

Keynesian and Monetarist economics: How do they differ?

July 7, 2024 No Comments

A: Monetarist economics is Milton Friedman’s direct criticism of Keynesian economics theory, formulated by John Maynard Keynes. Simply put, the difference between these theories is that monetarist economics involves the control of money in the economy, while Keynesian economics involves government expenditures. Monetarists believe in

What are the advantages of using a mini forex account for trading?

July 7, 2024 No Comments

A: A mini forex trading account involves using a trading lot that is one-tenth the size of the standard lot of 100,000 units. In a mini lot, one pip of a currency pair based in U.S. dollars is equal to $1, compared to $10 for

What are the most common currency pairs traded in the forex market?

July 7, 2024 No Comments

A: There are many official currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For

What are the rules for placing stop and limit orders in forex?

July 7, 2024 No Comments

A: The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but also to suffer large losses. For this reason, investors should employ an effective trading strategy that includes both stop and limit orders to

What causes a recession?

July 7, 2024 No Comments

A: The National Bureau of Economic Research (NBER) defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales.” A recession

What do the terms weak dollar and strong dollar mean?

July 7, 2024 No Comments

A: The terms weak dollar and strong dollar are generalizations used in the foreign exchange market to describe the relative value and strength of the U.S. dollar against other currencies. The terms “strong,” “weak,” “strengthening” and “weakening” are interchangeable for any currency. Defining a Strong and Weak

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