The value of a currency is determined by

Question

Quizplus · Accepted Answer

The value of a currency is determined by the interaction between the demand and supply of that currency relative to the demand and supply of other currencies. Factors such as interest rates, inflation, political stability, and economic growth can affect the demand and supply of a currency, which in turn influences its value in relation to other currencies. The foreign exchange market, where currencies are traded, is the primary mechanism for determining exchange rates based on the supply and demand of currencies.

The Value of a Currency Is Determined by