An exchange rate shock is usually caused by a _____ in the _____ of foreign exchange.
A) decrease, supply
B) increase, supply
C) decrease, demand
D) consistency, demand
E) disruption, demand

Question

Quizplus · Accepted Answer

An exchange rate shock is typically caused by a decrease in the supply of foreign exchange, which can lead to a sudden and significant change in the exchange rate.

An Exchange Rate Shock Is Usually Caused by a _____