A fixed exchange rate is:

Question

Quizplus · Accepted Answer

A fixed exchange rate refers to a system where a government or central bank sets the value of its currency in relation to another currency or a standard such as gold. Therefore, option B is the correct answer, as it describes the value of a nation's money in gold as a fixed exchange rate. Option A is incorrect as it describes a floating exchange rate determined by supply and demand forces. Option C is incorrect as the World Bank does not determine exchange rates, but rather provides loans and technical assistance to countries. Option D is incorrect as there is an answer that correctly describes a fixed exchange rate.

A Fixed Exchange Rate Is