Which Type of Exchange Rate Arrangement Is Based on Supply

question 17

Multiple Choice

Which type of exchange rate arrangement is based on supply and demand?

• A)soft peg
• B)hard peg
• C)crawling
• D)floating

---

Definitions:

Accuracy

The degree to which a measured value or calculation approaches the true value, often considered in terms of error magnitude.

Metric Dimensioning

A system of measurement that uses the meter, liter, and gram as base units of length, volume, and weight, respectively.

Decimal Places

The number of digits to the right of the decimal point in a numerical value, indicating the precision of a measurement.

Limit Dimensioning

A dimensioning method where two limits of size are provided, giving the minimum and maximum allowable dimensions for manufacturing.