ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand for foreign exchange
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supply demand forces
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supply of foreign exchange
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government
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Detailed explanation-1: -Under flexible exchange rate regime, the rate of exchange is determined by the forces of demand and supply. In other words, the equilibrium rate of exchange occurs where demand and supply are equal to each other.
Detailed explanation-2: -A floating rate is determined by the open market through supply and demand on global currency markets. Therefore, if the demand for the currency is high, the value will increase. If demand is low, this will drive that currency price lower.
Detailed explanation-3: -In floating exchange rate system, exchange rate are determined by market demand and supply forces for the currencies.
Detailed explanation-4: -A floating exchange rate is determined by the private market through supply and demand.
Detailed explanation-5: -Interest and inflation rates. Inflation is the rate at which the cost of goods and services rises over time. Current account deficits. Government debt. Terms of trade. Economic performance. Recession. Speculation. 06-Sept-2022