Which of the following is NOT currently a cause of fluctuation in foreign exchange rates?
A) Inflation rates.
B) The pegging of a currency to the American (U.S.) dollar.
C) Interest rates.
D) Trade surpluses and deficits.

Question

Quizplus · Accepted Answer

The pegging of a currency to the American (U.S.) dollar is not a cause of fluctuation in foreign exchange rates; it is a policy choice by a country to stabilize its currency relative to the U.S. dollar, thereby reducing fluctuations.

Which of the Following Is NOT Currently a Cause of Fluctuation