Economics · Foreign Exchange Rate
Which of the following statements best describes or justifies a 'floating exchange rate'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It records international transactions of assets.
- 2It reduces total foreign exchange reserves.
- 3It is determined by the market forces of demand and supply.✓
- 4It maintains a permanent balance between export and import.
Correct answer
It is determined by the market forces of demand and supply.
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