an appreciation of the currency is likely to occur if
Answers
Answered by
3
Answer: An appreciation means the exchange rate (£) becomes stronger (worth more) against a basket of currencies.
Explanation:
Speculation plays an increasing role in the determination of exchange rates. If investors feel a currency is likely to appreciate in the future they will buy now and actually make it occur. E.g. if people expect interest rates to rise the currency will rise.
Similar questions