Question

f a country exports more than it imports, then one can infer that its currency would be likely to depreciate against other currencies. one can infer that its currency would be likely to appreciate against other currencies. none of the options

Answer 1

One can infer that its currency would be likely to appreciate against other currencies

Step-by-step explanation:

The export rate of a country determines the strength of her currency, especially goods that has a high demand globally. When a country exports more than she imports, her currency gains strength against other currencies.

High exportation ensures a stable economic growth of a country, with an increase in the number of manufacturing industries and more job opportunities for her people. While more importation than exportation affects the strength of currency negatively and kills the local industries of a country.