Which of the following best describes exchanges rates that are determined by the demand and supply foreign exchange in the absence of official intervention?

Question

Quizplus · Accepted Answer

Floating exchange rates are determined by the demand and supply of foreign exchange without any kind of intervention by governments or central banks. It means that the value of a currency is determined by market forces, such as supply and demand, rather than by government policy. The gold standard, target zones, and the Bretton Woods system are all examples of fixed exchange rate systems that involve government intervention.

Which of the Following Best Describes Exchanges Rates That Are