Before the rate increases, let’s imagine you have a $25,000 note. One bag of food may be purchased with a $25,000 bill. The same identical bag of food may be purchased with a twenty-five note once the rate changes.With smaller notes, the currency’s buying power will remain exactly the same as it was before to the rate adjustment. Investors like you and me are affected outside of the nation since a $25,000 note would be worth $75,000 at a rate of $3, and a $25 note would be worth $75.
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