Currency rates of exchange are determined by

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Quizplus · Accepted Answer

Currency rates of exchange are primarily determined by the demand and supply of the currency in the foreign exchange market. Factors such as economic conditions, interest rates, political stability, and trade balance affect the demand and supply of the currency, which in turn affects its exchange rate. While agreements among governments and multilateral business agreements can have some impact on exchange rates, the market forces of supply and demand are the primary determinant. The strength of a nation's army is not typically a factor in determining exchange rates.

Currency Rates of Exchange Are Determined by