Under the current monetary regime, volatility of currency rates and misalignment of currency rates both occur regularly.

Question

Quizplus · Accepted Answer

Under the current floating exchange rate system, currency rates are determined by market forces, leading to regular fluctuations in exchange rates. Additionally, misalignment of currency rates can occur when exchange rates do not accurately reflect the economic fundamentals of a country.

Under the Current Monetary Regime, Volatility of Currency Rates and Misalignment