What factors make a country’s currency stable?%0D%0A%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0Athe country it is from is not having a war%0D%0A%0D%0Athe country it is from is not having a war%0D%0A%0D%0Athe type of paper products used to make it%0D%0A%0D%0Athe type of paper products used to make it%0D%0A%0D%0Athe popularity of the nations as a travel destination%0D%0A%0D%0Athe popularity of the nations as a travel destination%0D%0A%0D%0Athe overall economic situation and a solid government%0D%0A%0D%0Athe overall economic situation and a solid government
(1 point)
Some factors that contribute to a country’s currency stability include:
- Strong and stable political and economic institutions
- Low inflation rates
- Low levels of debt and a manageable budget deficit
- Strong international trade relations
- Foreign exchange reserves
- Economic growth
- Sound monetary policy
- Confidence in the currency from investors and the public