Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. What is this practice called?
A)countertrading
B)floating exchange rates
C)variable purchasing power
D)flexible monetary policies

Question

Quizplus · Accepted Answer

This practice is called floating exchange rates, as the exchange rates between currencies are not fixed but instead fluctuate based on market demand and supply. Countertrading refers to the practice of exchanging goods or services instead of using currency, variable purchasing power refers to the concept that the value of money and purchasing power can fluctuate over time, and flexible monetary policies refer to a country's ability to adjust their monetary policies in response to changes in the economy.

Currency Markets Operate Under a System in Which the Prices