When the price of a currency is higher, the quantity of this currency demanded is lower.

Question

Quizplus · Accepted Answer

This is based on the law of demand, which states that as the price of a good or service increases, the quantity demanded of that good or service decreases. This applies to currencies as well - as the price of a currency (i.e. its exchange rate) increases, the quantity demanded of that currency decreases, since it becomes more expensive to acquire.

When the Price of a Currency Is Higher, the Quantity