The exchange rate policy of the United States is
A)the EMS.
B)a crawling peg.
C)a float.
D)a fixed rate within a band.
E) none of the above

Question

Quizplus · Accepted Answer

The exchange rate policy of the United States is a float, meaning that the value of the U.S. dollar is determined by supply and demand in the foreign exchange market. The U.S. does not fix its currency to a specific value or target a certain exchange rate range, and it is not a member of the EMS or any other fixed exchange rate system.

The Exchange Rate Policy of the United States Is