2007-03-12 08:37:19 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
They take a cut.
Assume American paper currency to American coinage.
Lender starts with 1 dollar and 10 dimes.
Customer 1: I want a dollar.
Lender: That will be 11 dimes.
Customer: Ok.
Lender now has 21 dimes.
Customer2: I have a dollar, but need dimes.
Lender: ok, here are 9 dimes.
Lender now has 1 dollar and 12 dimes.
2007-03-12 08:43:19 · answer #1 · answered by Vegan 7 · 0⤊ 0⤋
When I read your question, I understood you were asking about those change machines you'd find in a supermarket, like coinstar. So, if the other ppl answered your question, then you don't have to read any further. The machines in the supermarket take a cut of the change you cash in for bills. You'll cash in $20 in coins, but they want a few bucks for the convenience of using their machines. It was pretty steep, as I thought of using one at one time. I walked right back out and counted it myself.
2007-03-12 10:42:44 · answer #2 · answered by Stephanie 4 · 0⤊ 0⤋
Buy low, sell high just like everyone else.
They have 2 different prices for each currency, i.e. they buy a British pound for $2.20, and the sell them for $2.25.
2007-03-12 15:10:42 · answer #3 · answered by Quixotic 3 · 0⤊ 0⤋
by charging a service charge that is built into the exchange rate that they quote
2007-03-12 08:40:46 · answer #4 · answered by Mark 1 · 0⤊ 0⤋