A Floating Exchange Rate Regime Is One

question 52

Multiple Choice

A floating exchange rate regime is one:

• A) which limits exchange rate movements within a band that is set by the major banks.
• B) which limits exchange rate movements within a band that is set by the central bank.
• C) exchange rate for a currency is allowed to move as factors of supply and demand dictate.
• D) which limits exchange rate movements within a band that is set by the major FX traders.

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