When exchange rates are ________,we say that the country's exchange rate is fixed.
A)determined in the market
B)set by a country's central bank
C)determined by supply and demand
D)relatively stable

Question

Quizplus · Accepted Answer

When exchange rates are set by a country's central bank, we say that the country's exchange rate is fixed. This means that the central bank establishes a specific rate at which its currency can be exchanged with other currencies and tries to maintain that rate through its monetary policy.

When Exchange Rates Are ________,We Say That the Country's Exchange