661EconomicsMedium
If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to?
Adepreciate under a system of fixed exchange rates
Bappreciate under a system of floating fixed rates
Cdepreciate under a system of floating exchange rates
Dappreciate under a system of floating exchange rates
Correct answer
C. depreciate under a system of floating exchange rates
Explanation
The correct answer is depreciate under a system of floating exchange rates.