Today the exchange rate for all currencies is determined by supply and demand.

Question

Quizplus · Accepted Answer

The exchange rate of a currency is determined by the supply and demand of that currency in the foreign exchange market. When more people want to buy a currency than sell it, the price of that currency goes up. Conversely, when more people want to sell a currency than buy it, the price of that currency goes down. This is known as the market forces of supply and demand. Therefore, it is true that the exchange rate for all currencies is determined by supply and demand.

Today the Exchange Rate for All Currencies Is Determined by Supply