If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

Question

TuteeHUB · Accepted Answer

appreciate under a system of floating exchange rates

TuteeHUB · Answer

depreciate under a system of fixed exchange rates

TuteeHUB · Answer

depreciate under a system of floating exchange rates

TuteeHUB · Answer

appreciate under a system of floating fixed rates

1.	If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?
A.	depreciate under a system of fixed exchange rates
B.	depreciate under a system of floating exchange rates
C.	appreciate under a system of floating exchange rates
D.	appreciate under a system of floating fixed rates
Answer» C. appreciate under a system of floating exchange rates

Discussion