Under the floating exchange rate system, the value of a country's currency is determined by:

Question

Quizplus · Accepted Answer

In a floating exchange rate system, the value of a country's currency is determined by the market forces of supply and demand. The exchange rate will fluctuate depending on factors such as inflation, interest rates, political stability, and trade balances. The monetary authorities of the country may still intervene in the market to stabilize the exchange rate, but ultimately it is determined by the market. The United Nations does not have a Committee on Floating Currencies and countertrading is a trade practice that involves exchanging goods or services for other goods or services without using money, and is not directly related to determining the value of a currency.

Under the Floating Exchange Rate System, the Value of a Country's