International monetary systems

International monetary systems are ways countries around the world make trade easier and help them have enough money to buy things they need. When countries trade with each other, it's often difficult to figure out how much something is worth in one country compared to another. For example, things cost different amounts in Mexico compared to the US.

International monetary systems help countries figure out how to trade with each other fair and comfortably. They use special kinds of money, known as currencies, to make things easier. Currencies are pieces of money used by one particular country. For example, the US uses the US Dollar, while Mexico uses the Mexican Peso. International monetary systems help countries trade by putting a value on each type of currency, so that people can figure out how much they're worth compared to each other.

In addition to trading with each other, international monetary systems also help people borrow money from each other. That's why banks and other lenders often give loans to one another, using different kinds of money. This helps countries buy things they need, even if they don't have enough money right away.

Overall, international monetary systems help countries do fair and comfortable trading with each other, which helps keep the world economy running smoothly.