The problem with floating exchange rates is their volatility.

Name: The problem with floating exchange rates is their volatility.
Brand: Quizplus
Rating: 4.8 (62 reviews)

Question

Quizplus · Accepted Answer

Floating exchange rates are determined by market forces of supply and demand, which can be affected by a variety of factors such as economic events, political instability, and speculation. This can lead to fluctuations in the exchange rate, which can make it difficult for businesses to plan and budget effectively.

The Problem with Floating Exchange Rates Is Their Volatility