5
lesson pretestMultiple Choice

Pretest

Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which of these factors would strengthen demand for a nation’s currency on the international market? Choose four correct answers.

Answer
A
low unemployment rates
B
defeat in war
C
stability of government
D
high domestic inflation
E
high gross domestic product
F
victory in war

Explanation

A stable government and strong economic performance tend to build confidence in a nation’s currency. High GDP and low unemployment signal a productive, healthy economy, while victory in war can improve confidence in the country’s prospects. Defeat in war and high domestic inflation generally weaken confidence and demand for its currency.

AI-written and checked against the verified answer.

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