How are spot exchange rates determined?
A) using historical average prices of different currencies
B) the interaction between demand and supply of a currency relative to other currencies
C) taking the average of a basket of currencies
D) by government decree
E) predicting future currency movements in nonmember countries

Question

Quizplus · Accepted Answer

Spot exchange rates are determined by the current demand and supply dynamics of a currency relative to other currencies in the foreign exchange market.

How Are Spot Exchange Rates Determined