What Is a Floating Exchange Rate

question 46

Multiple Choice

What is a floating exchange rate?

• A)A trading system in which governments do not limit how many goods can be sent between countries
• 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

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