Compared with the U.S. dollar-yuan, the average fluctuation in the U.S. dollar-euro exchange rate is:
A) 6 or 7 times as large.
B) about the same.
C) somewhat smaller.
D) 6 or 7 times less.

Question

Quizplus · Accepted Answer

The average fluctuation in the U.S. dollar-euro exchange rate is significantly larger than that of the U.S. dollar-yuan, often being 6 or 7 times as large. This is due to the euro being part of a major currency pair with more volatility and the yuan being more tightly controlled by the Chinese government.