Which of the following can impact exchange rates?

A) Changes in consumer preferences
B) Government imposed tariffs.
C) Changing economic conditions
D) Differences in interest rates in the two countries
E) All of the above can impact exchange rates.

Economic Conditions

The current state of the economy in a country or region, encompassing factors like inflation rates, unemployment levels, and GDP growth.

Consumer Preferences

The subjective tastes and desires influencing the buying behavior of consumers among different goods and services.

Tariffs

Taxes imposed on imported goods and services to increase their price and protect domestic industries.