Asked by Bryce Burns on May 19, 2024
Verified
List the six determinants of exchange rates.
Exchange Rates
The value of one currency expressed in terms of another currency, used to determine how much of one currency you can exchange for another.
- Apprehend how shifts in consumer preferences and other determinants affect the worth of a nation's currency.
Verified Answer
FF
Frank FanelliMay 21, 2024
Final Answer :
The six determinants of exchange rates are: (1)change in tastes, (2)change in relative incomes, (3)change in relative inflation rates, (4)change in relative real interest rates, (5)changes in relative expected returns on stocks, real estate, or production facilities, and (6)speculation.
Learning Objectives
- Apprehend how shifts in consumer preferences and other determinants affect the worth of a nation's currency.
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