Answer (A) is correct . Relative interest rates is a financial, not a trade-related, factor affecting currency exchange rates.
Answer (B) is incorrect because Trade barriers is one of the trade-related factors affecting currency exchange rates.
Answer (C) is incorrect because Relative incomes is one of the trade-related factors affecting currency exchange rates.
Answer (D) is incorrect because Relative inflation rates is one of the trade-related factors affecting currency exchange rates.
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