Under a floating exchange rate system, what determines the exchange rate for each currency?
A) par value
B) gold standard
C) pegged value
D) supply and demand

Name: Under a floating exchange rate system, what determines the exchange rate for each currency? A) par value B) gold standard C) pegged value D) supply and demand
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Question

Quizplus · Accepted Answer

Under a floating exchange rate system, the exchange rate for each currency is determined by the supply and demand for that currency in the foreign exchange market.

Under a Floating Exchange Rate System, What Determines the Exchange