Why are many of the eastern European currencies considered to be soft currencies?
A) They do not depreciate against other currencies.
B) They cannot be readily converted into euros or dollars.
C) They provide long-term stability in terms of its purchasing power.
D) They serve as a reliable store of value.

Question

Quizplus · Accepted Answer

Soft currencies are often characterized by their limited convertibility on the international market, making it difficult to exchange them freely for hard currencies like euros or dollars. Eastern European currencies may be considered soft due to restrictions or the lack of demand in foreign exchange markets.

Why Are Many of the Eastern European Currencies Considered to Be