The exchange rates of smaller countries are very stable because the market for their currency is very liquid.

Name: The exchange rates of smaller countries are very stable because the market for their currency is very liquid.
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Question

Quizplus · Accepted Answer

The statement is false. The exchange rates of smaller countries can actually be more volatile due to the fact that their currency market is less liquid and more easily influenced by external factors such as changes in global trade policies or fluctuations in commodity prices.

The Exchange Rates of Smaller Countries Are Very Stable Because