The Exchange Rate Is

question 87

Multiple Choice

The exchange rate is

• A)the price of foreign exchange determined by the interaction of supply and demand
• B)an interest rate determined by the interaction of supply and demand
• C)fixed by each government separately
• D)always fixed for any two currencies by the two nations involved, regardless of any agreements made with other nations
• E)fixed by GATT

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Definitions:

Modigliani

Refers to Franco Modigliani, an Italian-American economist known for his work on corporate finance, the Modigliani-Miller theorem, and the life-cycle hypothesis of saving.

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