Across the globe, exchange rate regimes are:
A) mostly fixed.
B) a mix of fixed and floating.
C) mostly floating.
D) hard to pinpoint.

Question

Quizplus · Accepted Answer

Most countries have a mix of fixed and floating exchange rate regimes. Some countries with smaller economies or less developed financial markets may choose to have a fixed exchange rate in order to promote stability and attract foreign investment. However, many larger economies with more developed financial markets, such as the United States and Japan, have a floating exchange rate regime, where the value of their currency is determined by market forces. Therefore, it can be said that exchange rate regimes across the globe are a mix of fixed and floating.

Across the Globe, Exchange Rate Regimes Are