Which of the following will NOT contribute to the appreciation of a currency? Persistent trade deficit...

Which of the following will NOT contribute to the appreciation of a currency?

Persistent trade deficit

Rampant corruption

Low interest rates

Social unrest

High inflation

Solutions

Expert Solution

Persistent trade deficit will be leading to lower exchange rate and it will be a weakening the domestic currency because when there will be higher amount of trade deficit in the country, it will lead to weakening the currency and it will not be leading to appreciation of the currency.

Correct answer will be option (A ) persistent trade deficit

jeff jeffy answered 2 years ago

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