Start learning →

If outflows exceed inflows, what pressure does the country's currency face?

ATo appreciate
BTo stay fixed
CTo depreciate
DTo be abolished
Answer & Solution
Correct answer: C. To depreciate
Net outflows raise the supply of the domestic currency abroad, pushing it to depreciate.
Practise this question with Quill — CA Foundation →

Keep practising International Trade

Browse all International Trade questions for CA Foundation, or explore more Business Economics topics.

Start a International Trade lesson →
Related questions