The surplus which appreciates the value of the currency is known as:

Question

Quizplus · Accepted Answer

The surplus in the balance of payments refers to the excess of exports over imports, which increases the demand for the currency and appreciates its value. Purchasing Power Parity is a theory about the long-term equilibrium exchange rate based on relative price levels. Current capital refers to the inflows and outflows of financial investments. Interest Rate Parity is a theory that explains the relationship between exchange rates and interest rates.

The Surplus Which Appreciates the Value of the Currency Is