Which of the following refers to a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand?
A)Fixed exchange rate
B)Floating exchange rate
C)Forward exchange rate
D)Pegged exchange rate
E)Nominal exchange rate

Question

Quizplus · Accepted Answer

Floating exchange rate refers to a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand. Four of the world's major trading currencies-the U.S. dollar, the European Union's euro, the Japanese yen, and the British pound-are all free to float against each other.

Which of the Following Refers to a System Under Which