What do you mean by the statement,"After the Treaty of Versailles the value of German mark fell."?Pls explain how the value of a currency can fall.
Dear Student
Above statement means that after Treaty of Versailles was signed, value of Germany currency fell down.
Value of currency can fall due to following reasons:
1. Political instability
2. Interest rate differential
3. Increase in money supply
4. Increase in inflation rate
Regards
Above statement means that after Treaty of Versailles was signed, value of Germany currency fell down.
Value of currency can fall due to following reasons:
1. Political instability
2. Interest rate differential
3. Increase in money supply
4. Increase in inflation rate
Regards