8
lesson pretestMultiple Choice

Pretest

Question 8 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which factor plays a role in establishing the value of a country’s currency?

Answer
A
distance between countries
B
the attractiveness of the currency design
C
supply and demand
D
the location of the country

Explanation

A currency’s value is influenced by how much of it is available and how strongly people want to buy or hold it. This is the effect of supply and demand, so choice A is correct. A country’s location, its distance from other countries, and the currency’s design do not directly establish its value.

AI-written and checked against the verified answer.

Previous
Next