What Is a Floating Exchange Rate

question 61

Multiple Choice

What is a floating exchange rate?

• A)A monetary system in which the exchange rates of major currencies retain nearly the same value with respect to the U.S.dollar but are allowed to fluctuate during crises.
• B)A monetary system in which the exchange rates of currencies are set at a permanent price of gold.
• C)A monetary system in which the exchange rates of major currencies retain nearly the same value with respect to gold but are periodically adjusted during currency crises.
• D)A monetary system in which exchange rates are allowed to change according to their market prices.
• E)A trading system in which governments do not limit how many goods can be sent between countries.

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