At the most basic level,exchange rates are determined by the demand and supply of one currency relative to the

Question

Quizplus · Accepted Answer

Exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another currency. Essentially, it's the interplay between the two currencies that determines the exchange rate. The other options (A, B, C, and E) are not accurate descriptions of how exchange rates are determined.

At the Most Basic Level,exchange Rates Are Determined by the Demand