In the era of floating exchange rates,currency values relative to each other are determined by:

Question

Quizplus · Accepted Answer

In the era of floating exchange rates, currency values relative to each other are determined by all of the above factors, including supply and demand, interest rate gap between countries, and changes in inflation rates. These factors interact to determine the value of a currency in relation to others on the foreign exchange market.

In the Era of Floating Exchange Rates,currency Values Relative to Each