When a currency is allowed to increase or decrease in value relative to other currencies,the currency is said to:
A)be pegged to another currency.
B)be less valuable.
C)float.
D)devalue.

Question

Quizplus · Accepted Answer

When a currency is allowed to increase or decrease in value relative to other currencies, it is said to float. This means that its exchange rate is determined by market forces of supply and demand, rather than being fixed or pegged to another currency.

When a Currency Is Allowed to Increase or Decrease in Value