The exchange rate of foreign currency fluctuate day to day because of __________?
Correct answer: A. demand and supply
- A. demand and supply
- B. increased maturity
- C. decreased maturity
- D. instrument availability
Explanation
Foreign-exchange rates change as demand for a currency and its supply change in the market. Maturity and instrument availability are not the basic explanation for day-to-day exchange-rate fluctuations.
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