The Regime Whereby the Value of a Currency Is Determined

question 84

Multiple Choice

The regime whereby the value of a currency is determined by demand and supply conditions in the FX markets is called:

• A) fixed.
• B) floating.
• C) pegged.
• D) variable.

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Definitions:

Oasis

A fertile spot in a desert where water is found.

Payoffs

In economics, finance, and game theory, the returns or outcomes received from a certain investment or decision.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, considering the strategies of other players, and no player has anything to gain by changing their own strategy unilaterally.

Mixed Strategy

A situation in game theory where a player chooses among several possible moves according to a probability distribution.