If Exchange Rates Are Determined in a Floating Rate System

question 88

Multiple Choice

If exchange rates are determined in a floating rate system, what determines the value of a U.S.dollar in terms of euros?

• A)government exchange rate policies 
• B)IMF rules and policies 
• C)demand and supply 
• D)central bank interventions

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Definitions:

End-User Markets

Markets consisting of individuals or organizations that are the final consumers of products and services, using them for their own use.

Wholesaler

A person or company that sells goods in large quantities at low prices to retailers, rather than selling them directly to consumers.

Intermediaries

Entities that facilitate transactions or interactions between two or more parties in a supply chain, often involved in the distribution, wholesaling, and retailing of goods.

Retailers

Businesses or individuals that sell goods directly to consumers, acting as the final link in the supply chain from manufacturers to consumers.