Why do exchange rates change daily?
A) Because exchange rates reflect global supply and demand
B) Because exchange rates reflect political decisions
C) Because exchange rates reflect the economic health of the country
D) Because exchange rates are closely tied to the unemployment rates
E) Because exchange rates are based on the travel industry

Question

Quizplus · Accepted Answer

Exchange rates are determined by global supply and demand factors such as trade balances, interest rates, inflation rates, and political events. These factors can change on a daily basis leading to fluctuations in exchange rates.

Why Do Exchange Rates Change Daily