Question

How exchange rates of currency are determined?

Answer 1

If a currency is free-floating, itsexchange rate is allowed to vary against that of other currencies and isdetermined by the market forces of supply and demand. Exchange ratesfor such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.

Answer 2

Answer :



If a currency is free-floating, itsexchange rate is allowed to vary against that of other currenciesand is determined by the marketforces of supply and demand.Exchange rates for suchcurrencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.