Hard currency

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/hard-currency

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the function in volatility?Acts as a safe-haven currency, hedging against global risk aversion
2. Why do some countries have hard currencies and others have soft currencies?Countries with strong laws, low corruption, steady politics, and good money rules have hard currencies. Weak rules or unstable politics can make a currency soft and change a lot.
3. How did the US Dollar become a hard currency after World War II?After the war, the Bretton Woods system linked many currencies to the US Dollar, and the Dollar could be turned into gold. This made it very trusted and stable.

Macroeconomics: The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.
Store of Value: An asset that maintains its value over time without depreciating, allowing it to be saved and used later.
Safe-haven Currency: A currency that investors perceive as relatively stable during times of market turmoil or economic uncertainty.
Purchasing Power: The amount of goods and services that can be bought with a unit of currency.