A ________ exchange rate means that the rate changes constantly depending on the quantity supplied and demanded for the currency.

Question

Quizplus · Accepted Answer

A floating exchange rate is determined by the market forces of supply and demand, which can cause the rate to fluctuate constantly. The other options are all types of fixed exchange rates where the rate is set by the government or a central bank and remains relatively stable.

A ________ Exchange Rate Means That the Rate Changes Constantly