The exchange rate policy of Australia is:
A) part of the EMS.
B) a currency board.
C) a flexible regime.
D) a fixed rate within a band.
E) a crawling peg.

Question

Quizplus · Accepted Answer

Australia operates under a flexible exchange rate regime, meaning that the value of the Australian dollar is determined by market forces of supply and demand. The government does not set a fixed rate or manipulate the exchange rate within a band. Moreover, Australia is not a part of the European Monetary System (EMS) or a currency board, and does not have a crawling peg regime.

The Exchange Rate Policy of Australia Is