Question
Supply and demand affect the exchange rate.
a. True
b. False
a. True
b. False
Answers
There are no human answers yet.
Answered by
GPT-4o mini
a. True
Supply and demand significantly impact exchange rates. When the demand for a currency increases relative to its supply, its value tends to rise. Conversely, if the supply of a currency increases relative to its demand, its value usually falls. This interplay between supply and demand is a fundamental factor in determining exchange rates in foreign exchange markets.
Supply and demand significantly impact exchange rates. When the demand for a currency increases relative to its supply, its value tends to rise. Conversely, if the supply of a currency increases relative to its demand, its value usually falls. This interplay between supply and demand is a fundamental factor in determining exchange rates in foreign exchange markets.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.