Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

Exchange rates can be affected by a variety of factors, such as economic policies, market forces, and global events. Increased government spending, as seen in option A, can lead to inflation and a decrease in the value of a currency. Rising unemployment rates, as mentioned in option B, can also indicate a weakening economy and potentially lower demand for a currency. A decrease in exports, as mentioned in option D, can mean a decrease in demand for a country's currency as well.

However, rising interest rates or the sale of commodities, as mentioned in option C, can lead to an increase in demand for a currency and push its value up. When a country's interest rates rise, it can attract more investors and traders looking for higher returns on their investments. Additionally, the sale of commodities, such as oil or precious metals, can generate revenue and increase the demand for a country's currency. So, while the other options may have a negative or neutral effect on exchange rates, rising interest rates or the sale of commodities can potentially increase exchange rates.