Which of the following best explains what happens to the exchange rate of a floating currency?
Dina asked:
Which of the following best explains what happens to the exchange rate of a floating currency?
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Which of the following best explains what happens to the exchange rate of a floating currency?
A. The exchange rate for that currency changes depending on the operations of the free market.
B. The exchange rate for that currency goes up and down with the price of gold.
C. The exchange rate for that currency is determined by changes in the value of the U.S. dollar.
D. The exchange rate for that currency increases or decreases depending on the size of the country’s GDP.
May 6th, 2010 at 1:48 pm
A and D are the best explanations. Furthermore, the explanation A is not as good as D. berlin.tokyo