Finance, Forex and Investments

Question about money?

my mom sent money to a friend that moved to india via western union, and when she looked at the paper she saw that the payout to her friend was 4,427 rupee. She asked me why they paid her 4400 rupee when we only sent 100 dollars, she was expecting 100 rupee (lol). I told her that was because Indian rupee is less valuable than the american dollar, so the exchange rate is 44.277 so it becomes 4427 rupee. This became a long discussion as to why they're money is worth less than ours. I told her that when prices in a country rise (such as housing, food, gas) the value of the countries currency depreciates, and when these prices drop, the value rises. Is this correct? i'm going to college in august and i just wanted to make sure i'm not an idiot

Public Comments

1. you're correct. different inflation leads to change in interest rates. you might want to learn the difference between "they're", "their" and "there" :)