Currency Exchange Term Paper

Total Length: 407 words ( 1 double-spaced pages)

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strike Americans traveling or doing business in Israel is the exchange rate between the U.S. Dollar and the New Israeli Shekel. Of course, most are extremely happy when they leave the local exchange office or bank with a large wad of bills where they previously had but a few. This is because the current rate of exchange between the dollar and the shekel is 4.48 NIS per one dollar.

Unfortunately, this exchange does not necessarily mean that you can buy more in Israel. Take, for example that one wishes to purchase the latest souvenir t-shirt, say "I got stoned in Gaza." Now, of course it is normal to salivate over such a beauteous find. However, upon asking the price of this apparel gem, one's mouth may soon revert to its formerly parched state (completely normal in Middle-Eastern climes).
Especially when the shopkeeper grandly announces that the item will cost you 89.58 NIS. Whoa, doggy! That seems like a lot. In actuality, however, the price is equivalent to just $20.

Thus, one can see that in most markets it is not the amount of a particular currency that matters, but just how much that amount actually buys in the marketplace. For example,….....

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