Three factors that have the most important impact on future exchange rate movements include the country's price inflation,its market philosophy,and its ______???__________.
A)rate of economic growth
B)unemployment rate
C)interest rate
D)participation in the World Trade Organization

Question

Quizplus · Accepted Answer

Interest rates heavily influence the demand for a country's currency. Higher interest rates generally attract foreign investment and increase demand for the currency, leading to appreciation in its value, while lower interest rates may deter investment and lead to a decrease in demand and devaluation. Price inflation and market philosophy also impact exchange rates, but interest rates are considered the most important factor among the three options given.

Three Factors That Have the Most Important Impact on Future