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Interest Rate Parity Please confirm the first question (Factors) and assist in calculating annualized return. Several factors affect the exchange rate of a currency with
Interest Rate Parity
Please confirm the first question (Factors) and assist in calculating annualized return.
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. If the demand for a currency increases, the currency's value will increase relative to other currencies. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value from falling relative to other currencies, it will purchase its currency from sellers in the marketStep by Step Solution
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