How Are Spot Exchange Rates Determined

question 56

Multiple Choice

How are spot exchange rates determined?

• A)using historical average prices of different currencies
• B)the interaction between demand and supply of a currency relative to other currencies
• C)taking the average of a basket of currencies
• D)government decree
• E)predicting future currency movements in nonmember countries

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Definitions:

Active Verbal

The use of words and vocal sounds to engage actively and constructively in communication.

Justification

The process of providing reasons or arguments to support or defend a particular action, decision, or belief.

Excuse

is a justification provided to mitigate responsibility or blame for a perceived wrongdoing or failure, aiming to maintain one's social image or alleviate guilt.

Reproach

An expression of disapproval or disappointment directed towards someone's actions or behavior.