Which of the following is not a major reason for fluctuating exchange rates?

A) Differences in inflation rates
B) Black market (illegal) trading of currencies
C) Differences in interest rates
D) Trade surpluses and deficits between countries

Exchange Rates

The rate at which one currency can be exchanged for another, influenced by various economic factors.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, charged by lenders to borrowers.