Asked by
Shawntavia Vaughn
on Nov 22, 2024
Verified
The country of Jolania faced a major political instability when the nation's government implemented new trade laws that hurt investment opportunities for several industries. Companies doing business in Jolania feared an economic disaster, and moved their money to safer countries. Many sold their Jolanian currency to purchase other stable currencies. This resulted in the _____ of the Jolanian currency.
A) demonetization
B) depreciation
C) equitization
D) inflation
Political Instability
A situation where a country experiences changes in its political environment that can affect its government's ability to govern effectively.
Depreciation
A decrease in the value of one currency relative to another currency.
Economic Disaster
An economic disaster refers to a sudden and severe downturn in the economy, leading to significant financial loss, high unemployment rates, and often a decline in the standard of living.
- Identify factors leading to currency appreciation or depreciation.
Verified Answer
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Learning Objectives
- Identify factors leading to currency appreciation or depreciation.