A major determinant of floating exchange rate is
ECONOMICS
JAMB 2014
A major determinant of floating exchange rate is
- A. the highest denomination of the currency
- B. an Act of the parliament
- C. the system of government
- D. the forest of demand and supply
Correct Answer: D. the forest of demand and supply
Explanation
A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.
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