Illiquid currencies tend to exhibit ____ volatile exchange rate movements, as the equilibrium prices of their currencies adjust to ____ changes in supply and demand conditions.
A)less; even minor
B)less; only large
C)more; even minor
D)more; only large
E)none of the above

Question

Quizplus · Accepted Answer

Illiquid currencies are more sensitive to changes in supply and demand, meaning even minor changes can cause more volatile exchange rate movements.

Illiquid Currencies Tend to Exhibit ____ Volatile Exchange Rate Movements