Foreign exchange rates are affected by:

Question

Quizplus · Accepted Answer

Foreign exchange rates are affected by financial flows, as investors move money in and out of countries based on interest rates and economic performance. They are also affected by trade flows, as the demand for a country's currency increases when it is used to buy goods and services in international trade. Government intervention can also affect exchange rates, as central banks may use monetary policy and foreign exchange reserves to influence their currency's value. Therefore, all of the given answers are correct.

Foreign Exchange Rates Are Affected By