Question

In one sentence, give the name of The Netherlands currency. In four to five sentences, explain whether The Netherlands has a hard currency or a soft currency.

            In five to six sentences, explain whether there is a black market in The Netherlands.

Answer 1

Answer-

The “Guilder” had been the currency of Netherlands since 1680 but like other countries in the 28-member European Union, Netherlands uses the ''Euro" as its official currency since 2002.

Netherlands has a soft currency. (Though Netherlands official currency is Euro, since 2002). A soft currency is one that is ultra-sensitive to internal and external harmful events, and often fluctuates sharply. People do not expect a soft currency to maintain its value over time compared to the US dollar, euro, British pound sterling, Japanese Yen or Swiss franc. Most currencies across the world are soft currencies like Netherlands.

A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, prostitution (where prohibited), illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy.

The Netherlands has the largest indoor market in Europe which is the Bazaar. It is a black market where you can find absolutely everything from furniture and electronics to fashion and cosmetics. Wandering through the Oriental Market it’s like you’re actually in the Middle East. The Bazaar is just outside Amsterdam in the town of Beverwijk. You can get there by taking a train from Amsterdam Central Station. The Bazar is open on Saturday and Sunday.