Under a floating exchange rate regime,market forces have produced a volatile dollar exchange rate.

Question

Quizplus · Accepted Answer

Under a floating exchange rate regime, the value of a currency is determined by supply and demand in the foreign exchange market, which can lead to frequent fluctuations in the exchange rate. Therefore, the statement that market forces have produced a volatile dollar exchange rate under a floating exchange rate regime is true.

Under a Floating Exchange Rate Regime,market Forces Have Produced a Volatile