A freely floating exchange rate brings some risks to people who are actively engaged in foreign trade.

Question

Quizplus · Accepted Answer

A freely floating exchange rate is determined by the supply and demand of the currency in the foreign exchange market, which can result in fluctuations in the exchange rate. This can bring risks to those who are actively engaged in foreign trade, as the value of their imports or exports may fluctuate, impacting their profitability or costs.

A Freely Floating Exchange Rate Brings Some Risks to People