Which of the following was NOT a reason for the depreciation of the Australian dollar between March
A) the Treasurer's remark about the 'banana republic' in May 1986
B) the feeling that the Australian dollar was undervalued in early 1984
C) weak commodity prices
D) uncertainty about inflation

Question

Quizplus · Accepted Answer

The feeling that the Australian dollar was undervalued in early 1984 would not be a reason for its depreciation but rather a reason for potential appreciation or stability. The other options (A, C, D) are factors that could contribute to the currency's depreciation.

Which of the Following Was NOT a Reason for the Depreciation