Which one of the following reasons does NOT explain why exchange rates are important?
A) They affect the affordability of imports.
B) They make exports either more or less expensive for foreign buyers.
C) They affect the value of foreign assets and their returns.
D) They affect the profits of all domestic producers.

Question

Quizplus · Accepted Answer

Exchange rates do not directly affect the profits of all domestic producers, although they can have an indirect impact on profits by affecting the competitiveness of exports and affordability of imports.

Which One of the Following Reasons Does NOT Explain Why