The rule that governs a country's policy towards its exchange rate is known as:

Question

Quizplus · Accepted Answer

The rule that governs a country's policy towards its exchange rate is known as the exchange rate regime. A country's exchange rate regime refers to the way it manages its currency in relation to foreign currencies and the foreign exchange market. This can include fixed exchange rate systems, floating exchange rate systems, or some combination of the two. Therefore, option C is the best choice. Options A and B refer specifically to exchange rate systems, which are a part of the exchange rate regime, but not the overarching rule that governs it. Option D is not a commonly used or recognized term in the field of international finance.

The Rule That Governs a Country's Policy Towards Its Exchange