Currency Exchange | Free Online Finance Course | Alison

Currency Exchange - Revised

Learn about currency exchange, treasury bonds, trade imbalance, and the American-Chinese debt loop with this course.

Finances and Banking
Free Course
This free online course in currency exchange will give you a better understanding of currency exchange and its role in a country's development. For many, currency exchange is about buying foreign money for a vacation, but on an international scale currency exchange is hugely important; involving treasuries, bonds, imports and exports, trade imbalances, and the borrowing costs of a country, vital considerations for any trader or economist.
  • Duration

    1.5-3 Hours
  • Assessment

  • Certification

  • Responsive

  • Publisher

    Khan Academy





View course modules


Currency exchange is, as the name implies, the exchange of one currency to another. It is also the value of one currency in relation to another currency. This course will introduce you to currency exchange how it works. You will study the treasury bond or T-bond which is a marketable, fixed-interest U.S. government debt security that has a maturity of more than 10 years. You will also learn about liquid assets.

You will then study the effect of currency on trade and look into the currency Chinese Yuan. You will learn that China buys the available excess U.S. dollars from the open market in the form of treasury bonds. This helps keep the US dollar inflated and the Yuan deflated. You will look at the rationale and effects of the American-Chinese debt loop, and learn how countries trade and lend money for development and growth.

Currency is a system of money in general use in a particular country. By the end of this course, you will learn how currency is valued, devalued, and how countries trade and lend money to each other. You will also learn the knock-on effects of a lack of demand for Treasury bonds to a country and the costs thereafter. So, check out this course and start learning more about the role currency exchange practices play in the financial system.

Start Course Now

Learning Outcomes

Having completed this course, you will be able to:

  • Outline how currency exchange how it works
  • Summarize what a trade imbalance is
  • List some of the advantages and disadvantages of a trade imbalance
  • Describe treasury bonds, liquid assets and their use in economics
  • Define the terminology used around currency exchange
  • Illustrate how countries trade and lend money to develop growth


All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.



    You have received a new notification

    Click here to view them all