Answer:
A country purchases something from another country through agreements or quite simply a business deal, when dealing with a foreign currency the country exchanges the dollar for another type of money. Let's say you're an American and you want to go to Mexico, obviously you can't use American dollar to buy something in Mexico. Then you go and exchange that money for a Mexican dollar "peso," now you have Mexican money and they have American money and then Mexico can use that American money to buy things in American vice versa. A government can go broke due to recessions this includes, lack of jobs, frequent bankruptcies, and poor economy in general. Yes a country can just print more money but that does not mean it has value, you don't just add more fuel to the flames in hopes of extinguishing it. For example, there's a dollar in Zimbabwe that has a value of around 100 trillion but the dollar is not valuable, in fact, that dollar is worth 40 cents in American money. Adding onto "why can't a government print more money," if it was that easy why isn't each country as prosperous as the US for example.
Explanation:
There we go, need more explained?
