Traditionally, trade flow determined currency flows and therefore the level of the exchange rate.The exchange rate is now determined by:
A)currency flows.
B)trade levels.
C)domestic policy.
D)wholesalers who take possession of the product prior to sale.

Question

Quizplus · Accepted Answer

Currency flows, which include investments, speculative transactions, and other financial movements, now play a primary role in determining exchange rates, rather than just trade flows.

Traditionally, Trade Flow Determined Currency Flows and Therefore the Level