An appreciating currency is always a sign of economic health.

Question

Quizplus · Accepted Answer

While an appreciating currency can be a sign of economic health, it is not always the case. An appreciating currency can also indicate external factors such as an increase in the demand for the currency or a decrease in the supply of the currency. Additionally, a rapid appreciation can hurt export industries and make imports cheaper, harming the domestic economy. Therefore, it is important to consider various other factors before concluding that an appreciating currency always indicates economic health.

An Appreciating Currency Is Always a Sign of Economic Health