The exchange rate of a particular foreign currency changes as the supply and demand conditions in that country or its trading partners change. Such shifts may occur because of changes in tastes, technological improvements, www.100ksw.comanded by foreign as www.100ksw.comand.
　　 A. Right
　　 B. Wrong
　　 C. Doesn’t say
　　 2. When we spend more than we earn, then the exchange rate of local currency will appreciate.
　　 A. Right
　　 B. Wrong
　　 C. Doesn’t say
　　 3. One country needs foreign currencies because it has to pay bills for imports or makes financial investments in foreign countries.
　　 A. Right
　　 B. Wrong
　　 C. Doesn’t say

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