17.2 Exchange Rates
How willing people are to trade one type of currency for another affects trade in goods and services. An exchange rate is the price of one currency (such as the euro) in terms of another currency (such as the dollar). Most countries or groups of countries have a unique currency, which can be traded or exchanged for the currencies of other countries. The euro (€) is the currency of 23 European countries that belong to the Eurozone.5 It can be traded for U.S. dollars ($), Japanese yen (¥), British pounds (£), or many other currencies. In October 2015, one euro could be exchanged for $1.14 in U.S. currency. That is, the exchange rate between the dollar and the euro was 1.14.
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