In a Floating Exchange Rate, the Relative Value of a Currency

question 8

Multiple Choice

In a floating exchange rate, the relative value of a currency

• A) is more predictable and less volatile.
• B) is determined by market forces.
• C) changes infrequently only under a specific set of circumstances.
• D) is set against other currencies at some mutually agreed on exchange rate.
• E) does not depend on the free play of market forces.

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