When the Foreign Exchange Market Determines the Relative Value of a Currency

question 90

Multiple Choice

When the foreign exchange market determines the relative value of a currency, we say that the country is adhering to a ________ regime.

• A) currency board exchange
• B) pegged exchange rate
• C) fixed exchange rate
• D) floating exchange rate

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Definitions:

Claim Messages

Written or verbal communication that asserts a request for acknowledgment, remuneration, or entitlement from another party.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, often related to the quality of a product or service.

Sales Message

A communication designed to persuade a potential customer to purchase a product or service.

Central Selling Point

The primary attribute or value of a product or service that makes it appealing to potential customers.