← All decks

Make the terms stick.

Reveal each card, then rate how well you knew it. Spaced repetition schedules the next review at just the right moment.

1 / 11FX intermediate terms
Question

Why do interest-rate differentials drive currencies?

Click to reveal
Answer

Capital flows toward the higher risk-adjusted return, so the higher-rate currency tends to strengthen. The gap between two countries' rates is the key.

How well do you know this? Reveal the answer, then rate yourself.