If banks in Europe are paying a higher rate of interest on savings accounts, the demand for euros will _____, and the euro will:

Question

Quizplus · Accepted Answer

When banks in Europe offer higher interest rates on savings accounts, it attracts more investors and savers to deposit their money, increasing the demand for euros. As demand for the euro increases, its value appreciates on the foreign exchange market.

If Banks in Europe Are Paying a Higher Rate of Interest