Question

Which of the following situations in Russia would likely cause the value of the Russian ruble to rise ?

A. Russia announces a significant increase in its oil and gas exports due to high global demand.
B. The Russian government implements a series of economic reforms aimed at reducing inflation and increasing investor confidence.
C. Russia's central bank raises interest rates to combat high inflation.
D. Political stability is restored in Russia after a period of civil unrest and uncertainty.

Answer 1

The value of the Russian ruble would likely rise if Russia announces a significant increase in its oil and gas exports, the government implements economic reforms to reduce inflation and increase investor confidence, or if political stability is restored after a period of unrest.

Step-by-step explanation:

In the case of Russia, there are a few situations that could cause the value of the Russian ruble to rise. Firstly, if Russia announces a significant increase in its oil and gas exports due to high global demand, it would lead to an increased demand for the ruble, thus causing its value to rise. Secondly, if the Russian government implements a series of economic reforms aimed at reducing inflation and increasing investor confidence, it would create a more stable economic environment and attract foreign investors, resulting in a stronger ruble. Finally, if political stability is restored in Russia after a period of civil unrest and uncertainty, it would restore confidence in the country's economy and lead to an appreciation of the ruble.