With what type of exchange rate does the value of a country's currency remain constant relative to that of another country?
A) Floating
B) Indexed
C) Fixed
D) Adjusted
E) Deflated

Question

Quizplus · Accepted Answer

A fixed exchange rate system is where a country's currency value is set at a fixed rate to another country's currency. This means that regardless of changes in market supply and demand, the value of the currency should remain constant relative to the other country's currency.

With What Type of Exchange Rate Does the Value of a Country's