The exchange rate of a currency in a black market will be ________ than the official exchange rate.

Question

Quizplus · Accepted Answer

In a black market, the exchange rate of a currency is typically more favorable to the buyers of domestic currency than the official exchange rate. This is because in a black market, there is a higher supply of the domestic currency than demand for it, leading to a lower price for buyers. Additionally, black market exchange rates may reflect factors such as political or economic instability, which can further drive down the value of the domestic currency compared to more stable foreign currencies.

The Exchange Rate of a Currency in a Black Market