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 ?

A. depreciate under a system of fixed exchange rates
B. depreciate under a system of floating exchange rates
C. appreciate under a system of floating exchange rates
D. appreciate under a system of floating fixed rates

Correct Answer: depreciate under a system of floating exchange rates ✔

Last Updated: June 11, 2019