Which of the following statements is true?
A)Conceptually, an FX rate will appreciate in value relative to other currencies when demand is high.
B)Conceptually, an FX rate will appreciate in value relative to other currencies when supply is low.
C)Conceptually, an FX rate will depreciate in value relative to other currencies when demand is low.
D)All of the listed options are correct.

Question

Quizplus · Accepted Answer

All the statements are correct as they describe basic principles of supply and demand in the context of foreign exchange rates. High demand or low supply for a currency leads to appreciation, while low demand leads to depreciation.

Which of the Following Statements Is True