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Increased Demand for a Country's ________ Causes Its Currency to Appreciate

question 86

Multiple Choice

Increased demand for a country's ________ causes its currency to appreciate in the long run,while increased demand for ________ causes its currency to depreciate.


Definitions:

Non-Interest-Bearing

Describes a financial instrument that does not generate interest income for the holder.

Promissory Note

A pecuniary promise recorded in a document, where one side agrees to pay a definite financial sum to the other, available either on demand or on a date in the future that has been agreed upon.

Simple Interest

Interest determination based strictly on the principal sum, thereby excluding any interest that may have accrued in past periods from the calculation.

Non-Interest-Bearing

Pertaining to debt or security that does not earn interest over time, usually issued at a discount to its redemption value.

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