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Purpose of Location Attribute Functional Currency vs Category Mapping vs Currency Dimension Mapping

Summary:

What is the purpose of the Location Attribute "Functional Currency" when Category Mappings and Dimension Mappings exist within Data Exchange?

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I imagine this is probably a stupid beginner question, and my explanation is probably going to be a bit confusing because I don't fully understand what's going on myself with the set up, but we have a one currency application so I never really wrapped my head around this concept until now. We're looking into adding a "unit" type currency to ARCS called VOL, for Volume. I've noticed that in our prior loads, for Location Attributes, we have USD mapped as Functional Currency, even though our Functional Currency is already listed as USD in ARCS. I've seen other integrations where

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