Exchange rates exhibit:
A) steady behavior across the board.
B) erratic behavior across the board.
C) very different behavior, depending on whether the rates are fixed or floating.
D) variable behavior (sometimes steady and other times erratic), depending on the business cycle.

Question

Quizplus · Accepted Answer

Exchange rates can behave differently depending on whether they are fixed or floating. Fixed rates are more stable, while floating rates can be more volatile.

Exchange Rates Exhibit