Multiple Choice
Which of the following is true of a floating exchange rate policy?
A) This policy sets the exchange rate of the domestic currency in terms of another currency.
B) It prevents erratic fluctuations that may trigger macroeconomic turbulence.
C) Exchange rate is allowed to fluctuate between an upper and lower range.
D) Governments believe in the free market and allow it to determine exchange rates.
Correct Answer:
Verified
Correct Answer:
Verified
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