Which of the following is NOT an example of a factor that can significantly influence exchange rates?
A) The cost to purchase a loaf of bread in the U.S. has increased by $0.50 while the cost has remained the same in London.
B) The cost of capital has increased by 2% in the U.S. and has decreased by 2% in Germany.
C) Interest rates on short-term investments in the U.S. have decreased to 4% while interest rates in Japan are at 8%.
D) The U.S. has begun to export a higher level of goods to China than the prior year.
E) All of the above are factors that influence exchange rates.
Correct Answer:
Verified
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