Question

Producesilom of COL
The rate of exchange between £ and
$ is £1 =$1.87. The rate of exchange
between £(Pound) and Euro € is £1=ex
Rose Changed dolor $850 and received Euro
€ 550.​

Answer 1

Currency substitution

The most prominent example is the eurozone, where 19 European Union (EU) member states have adopted the euro (€) as their common currency (euroization). Their exchange rates are effectively fixed to each other.