ECONOMICS (CBSE/UGC NET)

ECONOMICS

BALANCE OF TRADE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following does not affect the demand for a nation’s currency?
A
total number of retail stores
B
taste and preferences
C
interest rates
D
income
Explanation: 

Detailed explanation-1: -Interest and inflation rates. Inflation is the rate at which the cost of goods and services rises over time. Current account deficits. Government debt. Terms of trade. Economic performance. Recession. Speculation. 06-Sept-2022

Detailed explanation-2: -Currency value is determined by aggregate supply and demand. Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply. The most common method to value currency is through exchange rates. 05-Dec-2022

Detailed explanation-3: -Inflation rates. Low inflation rates translate to a rise in the currency value hence low-interest rates. Interest rates. Interest rate changes affect currency exchange rates and their respective values. Government debt.

Detailed explanation-4: -Inflation > Interest rates > Government Debt/Public > Political Stability > Economic Recession > Terms of Trade > Current account deficit > Confidence and speculation > More items •16-Feb-2023

There is 1 question to complete.