Which statements describe characteristics of currency? Check all that apply.

Currency exchange rates are constant and stay the same.

Currencies can vary from nation to nation.

Currencies are divisible and have denominations.

Currencies cannot be exchanged for one another.

The value of a nation's currency can change, and this value is based on many factors.

The answers are 2,3,5 - I just got them right on the test!

To describe the characteristics of currency with the statements provided, the answers are ...

- Currencies can vary from nation to nation.

Think of the style of currency within the United States, we have dollar bills, quarters, nickels, dimes, pennies, etc. In other countries such as Germany for example, they use a type of currency known as "Euros".

- Currencies are divisible and have denominations.

These denominations within the United States include: Pennies (1 cent), Nickels (5 cents), Dimes (10 cents), Quarters (25 cents), and the Native American Dollar Coin (1 dollar).

- The value of a nation’s currency can change, and this value is based on many factors.

In 1690, America used a paper currency system (These were called "paper notes") to fund "Military Expeditions" and later other colonies began to take up this system as well. Later in 1861 during the Civil War, the U. S began to issue non-interest-bearing Demand notes (Later earning the nickname "Greenbacks"). Throughout the years, these "Notes" went through many re-designs and eventually became the dollar we see today.