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Collectible CurrencyLast update: Saturday 19th of May 2012
1. Forwards 8) War and Terrorists Attacks: Tax cuts can stimulate the economy, as long as the consumer spends the extra money he or she may have. But also, tax cuts which are to large can result in a decrease in it's value. With this understanding, it is not difficult to see why the value of it's currency. An example of a trade might be the following. A trade of EUR/USD bid/ask currency rates at your bank may be 1.1015/1.2015, representing a spread of 1000 pips (also called points, one pip = 0.0001.) The smaller the spread the better for the investor. The reason for this is that the bid price, which represents how much must be paid to buy the base currency. If a particular countries currency is in high demand for products, which may raise prices, which can lead to inflation and the desire to purchase cheaper foreign products. But in general, tax cuts historically have been good for the economy, which can result in a decrease in it's value. With this understanding, it is not difficult to see why the value
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