Exchange Rates Determined by the Forces of Demand and Supply

question 11

Multiple Choice

Exchange rates determined by the forces of demand and supply are called

• A)fixed exchange rates.
• B)floating exchange rates.
• C)equilibrium exchange rates.
• D)dirty exchange rates.

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Definitions:

Imperialism

A policy or practice by which a country extends its power and dominion over other nations or territories through colonization, military conquest, or economic domination.

Usury

is the practice of charging excessively high interest rates on loans, which has historically been considered morally reprehensible by many societies.

Maritime Power

Maritime power refers to a nation's strength and capability in navigating, controlling, and utilizing the seas for military, trade, or exploration purposes.

Signoria

A form of government in Italian city-states during the medieval and Renaissance periods, characterized by rule by a single lord or a hereditary ruling family.