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QUESTION IMAGE

which factor plays a role in establishing the value of a countrys curre…

Question

which factor plays a role in establishing the value of a countrys currency?
○ the attractiveness of the currency design
○ the location of the country
● supply and demand
○ distance between countries

Explanation:

Brief Explanations

The value of a country's currency is determined by economic principles. Supply and demand in the foreign exchange market and domestic economy affect currency value (e.g., high demand for a currency increases its value, excess supply decreases it). Currency design attractiveness, country location, or distance between countries don't impact currency value. So "supply and demand" is correct.

Answer:

C. supply and demand (assuming the options are labeled A, B, C, D with A as "the attractiveness of the currency design", B as "the location of the country", C as "supply and demand", D as "distance between countries")