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 ?

Related Mcqs:

The least common type of transaction in the foreign exchange is a ?

A. forward transaction B. spot transaction C. swap transaction D. None of the above...

The difference between bid (buying) rates and ask (selling) rates is called the ?

A. profit B. arbitrage C. spread D. forward transaction...

1. The most widely traded currency in the foreign exchange market is the ?

2. euro 3. Chinese Yuan 4. British pound 5. U.S dollar...

In 1971, most countries ?

A. adopted a new system of fixed exchange rates B. gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand C. adopted single internationally accepted currency whose use is limited to international transactions D. returned to the gold standard...

If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ?

A. as the money supply is decreased the interest rate will increase and the price of UK exports will rise and the Price of UK imports will fall B. as the money supply is decreased the interest rate will increase, and the price of UK exports will fall and the price of UK imports will … If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting...