Like Most Foreign Exchange Rates,the Dollar/euro Rate Is a Floating

question 42

Multiple Choice

Like most foreign exchange rates,the dollar/euro rate is a floating rate,which means it changes constantly depending on the quantity supplied and demanded for each currency in the market.The supply and demand for each currency is driven directly by all of the following factors,EXCEPT:

• A)relative inflation.
• B)firms trading goods.
• C)investors trading securities.
• D)the actions of central banks in each country.

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