Question

In: Finance

A _____ exchange rate is one where currency values are set via supply and demand in...

A _____ exchange rate is one where currency values are set via supply and demand in currency markets. a) fixed b) floating c) managed

Solutions

Expert Solution

Answer : Option b [ floating ]
Explanation :
In floating exchange rate, when the demand of any currency decrease and supply increases, then its value decreases and when the demand of any currency increases and supply decreases, then its value increases.

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