🎴 Flashcard Mode
Exchange Rate Determination
Card1 / 15
Mastered0
Review0
QuestionClick to flip
What is the primary determinant of exchange rates under a flexible exchange rate system?
AnswerClick to flip back
A
Demand and supply of currencies
💡 Explanation:
In a flexible exchange rate system, the exchange rate is determined by the forces of demand and supply in the foreign exchange market.