Exchange Rates That Are Determined by the Unregulated Forces of Supply

question 61

Multiple Choice

Exchange rates that are determined by the unregulated forces of supply and demand are:

• A) managed exchange rates
• B) fixed exchange rates
• C) pegged exchange rates
• D) floating exchange rates

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Definitions:

Equality

The state of being equal, especially in status, rights, opportunities, or distribution of wealth.

Efficiency

In economic terms, this refers to the optimal production and allocation of resources to maximize output with the least waste.

Scarce Resources

Limited resources which are not enough to satisfy the unlimited wants of people.

Opportunity Cost

The price of discounting the second most appealing alternative when engaging in decision-making.