The currencies of countries enjoying BOP trade surpluses or low inflation rates are more likely to sell at a ________.

Question

Quizplus · Accepted Answer

Currencies of countries with trade surpluses or low inflation rates tend to be stronger and more stable, leading to a higher demand for these currencies. This demand can cause the currencies to sell at a forward premium, as investors are willing to pay more now for the promise of receiving these stronger currencies in the future.

The Currencies of Countries Enjoying BOP Trade Surpluses or Low