What is the term for trading one currency for another?

Forex Interest Rate Inflation Deficit

What does a high-interest rate in a country generally lead to?

Increased foreign investment and a stronger currency Decreased foreign investment and a weaker currency Higher inflation and a weaker currency Lower inflation and a stronger currency

What is a current account deficit?

The difference between a country's spending and its earnings The amount of debt a country has The rate at which a country's currency is exchanged The level of inflation in a country

How does a large public debt impact a country's exchange rate?

It strengthens the exchange rate as it indicates economic growth It has no significant impact on the exchange rate It weakens the exchange rate as it makes the country a less attractive investment It stabilizes the exchange rate by reducing volatility

What is the impact of a country's export growth rate exceeding its import growth rate?

It weakens the country's currency It has no impact on the country's currency It strengthens the country's currency It leads to higher inflation