All else being equal, the greater the supply of a currency, the lower its price; the lower the supply of a currency, the higher its price.

Question

Quizplus · Accepted Answer

This is a basic principle of supply and demand in economics. When the supply of a currency increases, its value decreases relative to other currencies because there is more of it in circulation. Conversely, when the supply of a currency decreases, its value increases relative to other currencies because there is less of it available.

All Else Being Equal, the Greater the Supply of a Currency