Which factor plays a role in establishing the value of a country’s currency?a. the attractiveness of the currency designb. the location of the countryc. supply and demandd. distance between countries

Step 1: Define the Problem

Identify which factor influences the value of a country's currency.

Step 2: Break Down the Problem

Consider each option:

• a. The attractiveness of the currency design
• b. The location of the country
• c. Supply and demand
• d. Distance between countries

Step 3: Apply Relevant Concepts

• Supply and Demand: In economics, the value of a currency is primarily determined by the supply and demand for that currency in the foreign exchange market. Factors such as interest rates, economic stability, and trade balances influence supply and demand.

Step 4: Analysis, Verify and Summarize

• Attractiveness of Currency Design: This is generally not a factor in determining currency value.
• Location of the Country: While geographic location can influence economic activity, it is not a direct factor in currency valuation.
• Supply and Demand: This is the primary factor affecting currency value.
• Distance Between Countries: This does not directly affect currency value.

Final Answer

c. supply and demand