In the United States, the exchange rate for the dollar is determined by

Question

Quizplus · Accepted Answer

The exchange rate for the dollar is primarily determined by the forces of demand and supply in the foreign exchange market. This means that the value of the dollar in relation to other currencies will fluctuate based on the level of demand for it relative to supply, as well as other market factors such as economic growth and political stability. While the Federal Reserve may have some influence over the exchange rate through monetary policy, the ultimate determination of the rate is largely market-driven. The Secretary of the Treasury and gold reserves held in Fort Knox do not directly affect the exchange rate.

In the United States, the Exchange Rate for the Dollar