Which of the following is a factor that influences changes in exchange rates?

Question

Quizplus · Accepted Answer

All of the factors listed can influence changes in exchange rates. Recurring trade deficits can cause a decrease in demand for a country's currency, leading to a decrease in exchange rates. Political instability can create uncertainty and lower demand for a country's currency. High interest rates can increase demand for a currency, resulting in an increase in exchange rates.

Which of the Following Is a Factor That Influences Changes