The Exchange Rate Between Currencies Depends on

question 21

Multiple Choice

The exchange rate between currencies depends on

• A) the interest rate that can be earned on deposits of those currencies.
• B) the interest rate that can be earned on deposits of those currencies and the expected future exchange rate.
• C) the expected future exchange rate.
• D) national output.
• E) the interest rate that can be earned on deposits of those countries and the national output.

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