The demand for a given currency will be strong if all of the following factors are present EXCEPT

Question

Quizplus · Accepted Answer

Low interest rates would not necessarily make the demand for a currency strong as higher interest rates can attract foreign investments and increase demand for a currency. The other factors listed, low inflation, positive trade balance, and strong economic forecast, would all contribute to a strong demand for a currency.

The Demand for a Given Currency Will Be Strong If