The value of a country's currency may increase by

Question

Quizplus · Accepted Answer

A stock market rally in a country is likely to increase investors' confidence in the economy, leading to an inflow of foreign capital and an increase in demand for the country's currency, which in turn would lead to the appreciation of the currency. Continuous government spending (option A) can lead to inflation and a decrease in the value of the currency, and an increase in money supply (option C) can also lead to inflation and decrease in currency value. Therefore, option B is the best choice.

The Value of a Country's Currency May Increase by