Countries with a floating exchange rate tend have what features?
I.Trade concentrated with a single country
II.Similar inflation rates with trading partners
III.Large,closed economies
IV.Trade diversified across many countries

Question

Quizplus · Accepted Answer

Countries with floating exchange rates often have large, closed economies (III) and trade diversified across many countries (IV), allowing them to absorb external shocks without pegging their currency to another.

Countries with a Floating Exchange Rate Tend Have What Features