Multiple Choice
With respect to exchange rates,which of the following statements is true?
A) An official exchange rate is the "market" rate resulting from the supply and demand for a currency.
B) A floating exchange rate is the "market" rate resulting from the supply and demand for a currency.
C) A government cannot set an exchange rate for their currency that is higher (weakens their currency) than the quoted interbank market rate.
D) A government cannot set an exchange rate for their currency that is lower (strengthens their currency) than the quoted interbank market rate.
Correct Answer:
Verified
Correct Answer:
Verified
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