Which of the following is not one of the four main determinants of exchange rates in the long run?

Question

Quizplus · Accepted Answer

The four main determinants of exchange rates in the long run are relative price levels across countries, relative rates of productivity growth across countries, preferences for domestic and foreign goods across countries, and the institutional arrangements that govern the international monetary system. Speculating in currency markets is not considered a determinant of exchange rates in the long run, as it is a short-term activity that can cause fluctuations in exchange rates but does not have a lasting impact on their level.

Which of the Following Is Not One of the Four