What determines the exchange rate of a currency?

Exploring Foreign Exchange Markets and Exchange Rates

Interactive Video
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Social Studies
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6th - 10th Grade
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Hard

Amelia Wright
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The country's export volume
The country's interest rate policy
Supply and demand in the market
The country's GDP
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens when a currency appreciates?
It benefits importers and hurts exporters
It benefits exporters and hurts importers
It has no effect on the economy
It decreases the country's GDP
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the result of a currency depreciation?
It decreases the country's export volume
It benefits exporters and hurts importers
It benefits importers and hurts exporters
It increases the country's GDP
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which factor increases the demand for a country's currency?
A decrease in the country's price levels
A decrease in the country's interest rates
A recession in foreign economies
An increase in foreign preference for the country's goods
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following would cause an increase in demand for U.S. dollars?
A decrease in U.S. interest rates
An increase in foreign interest rates
An increase in foreign demand for U.S. goods
A recession in the U.S.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What effect does an increase in domestic interest rates have on the foreign exchange market?
Decreases the supply of the domestic currency
Increases the demand for foreign currencies
Decreases the demand for the domestic currency
Increases the supply of foreign currencies
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens when there is an increase in the supply of a currency?
The currency depreciates
The currency appreciates
The demand for the currency increases
The GDP of the country increases
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