How Is a Floating Exchange Rate Determined

question 70

Multiple Choice

How is a floating exchange rate determined?  

• A) by central planners 
• B) by the actions of central banks 
• C) by governments 
• D) by market forces

---

Definitions:

Private Property

The legal right to own, use, and dispose of physical items or land, exclusive of others, protected by law.

Enacting Laws

Enacting laws refers to the process by which legislative bodies create new statutes or legal standards.

Federalism

Federalism is a system of government in which power is divided between a central authority and constituent political units, such as states or provinces.

Governing Framework

The system of rules, practices, and processes by which a government is directed and controlled.