Question

Which is not an important determining factor in the value of the American dollar on the currency in international markets?

A: a stable government
B: inflation
C: interest rates
D: the balance of exports/imports
E: its representative value

Answer 1

E

Step-by-step explanation:

Answer 2

I believe the answer is: E. Representative value

Representative value does not determine the purchasing power of a currency. It only represent an acknowledgement that we can use a certain object as a medium of exchange. The one that actually determine the purchasing power of a currency is called intrinsic value.