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USD-CD / US Dollar to Canadian Dollar


The US dollar and the Canadian dollar are two of the most popular currencies in the world. This article will explain the similarities and differences between them, such as what this difference means to you, and how they're related.

More About USD-CD / US Dollar to Canadian Dollar

Continue reading to learn more about:

What exactly is currency?
How do currency fluctuations affect market prices and trading?
What are the similarities between the US dollar and the Canadian dollar?
What's the difference between the USD and the CD?
More information on the US Dollar to Canadian Dollar exchange rate


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What exactly is currency?


Currency is a means of exchange, and often serves as a medium of economic trade. Combined with banks and other financial institutions, currency creates a financial system. A currency is used with the intention that it can be exchanged for a service or product and then re-exchanged for another unit of the same currency or other units of currency at some later time. The use of currency spreads their use and makes them convenient to exchange.


 
 

How do currency fluctuations affect market prices and trading?


The value of a currency determines how much it is worth compared to other currencies. For example, the Canadian dollar is trading at about 73 US cents. There are many factors that affect currency fluctuations including central banks' policies, interest rates and inflation. By learning about these factors you can get a better understanding of why currency prices change.

 

What are the similarities between the US dollar and the Canadian dollar?

The US dollar and Canadian dollar are very similar. Both are a fiat currency; neither is backed by gold or other precious metals like other major currencies of the world.
They are also both the official currencies of their respective countries. Like all fiat currencies, the value of the US dollar and Canadian dollar go up and down depending on the market and how much each country prints.
 
  • What's the difference between the USD and the CD?

    The US dollar and Canadian dollar are pretty similar in how they work, but you should know the differences to avoid any confusion when you're dealing with money. The biggest difference is that the US has a Federal Reserve which can artificially change the value of their dollar by increasing or decreasing the supply. Canada doesn't use this system, so the market determines their currency value.
  • More information on the US Dollar to Canadian Dollar exchange rate

    The USD/CAD rate is the exchange rate for the US dollar against the Canadian dollar, or how many Canadian dollars for one American dollar. The "spot" value of this currency pair is set by the foreign exchange markets and changes with each transaction depending on supply and demand.