Floating exchange rates are determined by
A)market forces.
B)the IMF.
C)the World Bank.
D)an international commission on exchange rate parity.
E)national banks

Question

Quizplus · Accepted Answer

Floating exchange rates are determined by market forces, which means that the exchange rate is not fixed and is instead influenced by supply and demand for a currency in the foreign exchange market. Governments and central banks may intervene in the market to influence exchange rates, but ultimately it is the market that determines the exchange rate. The IMF and World Bank may provide recommendations or assistance related to exchange rate policies, but they do not directly determine floating exchange rates. An international commission on exchange rate parity does not exist, and while national banks may have some influence, they do not solely determine floating exchange rates.

Floating Exchange Rates Are Determined by