Which of the following is not a major reason for fluctuating exchange rates?
A)Differences in inflation rates
B)Black market (illegal)trading of currencies
C)Differences in interest rates
D)Trade surpluses and deficits between countries

Question

Quizplus · Accepted Answer

Black market trading of currencies may affect the value of a currency on a small scale, but it is not a major reason for significant fluctuations in exchange rates. The other options (inflation rates, interest rates, and trade surpluses/deficits) are widely recognized as major factors affecting exchange rates.

Which of the Following Is Not a Major Reason for Fluctuating