Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This is the system of _____.
A)countertrade
B)floating exchange rates
C)dumping
D)contract manufacturing

Question

​Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This is the system of _____.
A)countertrade
B)​floating exchange rates
C)​dumping
D)contract manufacturing

Quizplus · Accepted Answer

The system described in the statement is that of floating exchange rates, in which the exchange rates between currencies are determined by the market forces of supply and demand. Countertrade is a method of international trade in which goods or services are exchanged without the use of currency, dumping refers to the practice of selling goods in a foreign market at a price lower than their domestic market price in order to gain market share, and contract manufacturing involves outsourcing the production of a product to a third-party manufacturer.

​Currency Markets Operate Under a System in Which the Prices

Currency Markets Operate Under a System in Which the Prices