Which of the following is the main cause of changes in foreign exchange rates?

A. Types of resources in a country
B. Supply and demand
C. A conversion proportion
D. Imports and exports



Answer :

Final answer:

Supply and demand is the primary factor influencing foreign exchange rates in the market.


Explanation:

Supply and demand is the main cause of changes in foreign exchange rates. Changes in demand for a country's currency or changes in its supply can significantly affect macroeconomic activity. Speculators, differences in rates of return, and various economic factors impact the exchange rates in the foreign exchange market.


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