The value of a foreign currency is:
A)stable,since values are determined by the marketplace.
B)not subject to determination except at the specific time at which a transaction in the currency occurs.
C)subject to change depending on whether it is a pegged or floating currency.
D)subject to change and determined by forces of supply and demand.

Question

Quizplus · Accepted Answer

The value of a foreign currency is subject to change and is determined by forces of supply and demand, meaning that it can fluctuate in relation to other currencies. This is particularly true for floating currencies, which are not pegged to any specific value or benchmark.

The Value of a Foreign Currency Is