Currency Value and Trade Balance

The video tutorial explains the value of different currencies, focusing on why the Brazilian real is worth less than the euro. It discusses the impact of currency exchange and demand on currency value, highlighting how Brazil's need to import goods increases demand for foreign currencies like the dollar. The tutorial also covers the role of trade balance, noting that Brazil's positive trade balance helps stabilize the real's value as foreign buyers need to purchase reais to buy Brazilian products.

How much is 50 Euros approximately worth in Brazilian Real?

• R$ 500

• R$ 400

• R$ 300

• R$ 200

What is one reason why the value of the Brazilian Real is less than the Euro?

• Brazil has a stronger economy

• Brazil exports more than it imports

• Brazil imports more than it exports

• Brazil has a higher GDP

What happens to the price of the dollar when the demand for it increases?

• The price fluctuates randomly

• The price increases

• The price remains the same

• The price decreases

Why does Brazil need to exchange its currency for other currencies?

• To pay off debts

• To buy foreign equipment and goods

• To increase its currency value

• To support tourism

How does a positive trade balance affect a country's currency?

• It decreases the currency value

• It has no effect on the currency value

• It increases the currency value

• It makes the currency unstable

What is the main mechanism that determines the value of a currency?

• Demand and supply

• International loans

• Government policies

• Tourism rates