If the demand for a country's currency increases, the currency
A) appreciates.
B) depreciates.
C) stays the same.
D) could either appreciate, depreciate, or stay the same.

Question

Quizplus · Accepted Answer

When the demand for a country's currency increases, it means more people or institutions want to buy the currency, which typically leads to an increase in its value relative to other currencies. This process is known as appreciation.

If the Demand for a Country's Currency Increases, the Currency