Exchange rates between countries are usually determined by which of the following?
A) a number of factors including interest rates, inflation, and imports/exports for the countries
B) inflation in the first country divided by interest rate in the second country
C) an agreement between the two countries plus an interest rate exchange
D) the International Monetary Fund

Question

Quizplus · Accepted Answer

Exchange rates between countries are usually determined by a number of factors including interest rates, inflation, and imports/exports for the countries. The value of a country's currency is affected by many economic and political factors, which can create fluctuations in exchange rates. For example, if a country has high inflation, it may experience a decrease in the value of its currency relative to other countries. Similarly, a country with a strong economy and low inflation may see an increase in the value of its currency. The exchange rate between countries is usually determined by a combination of these factors.

Exchange Rates Between Countries Are Usually Determined by Which of the Following