Question

Note: -
You are altempting question 9 out of 12
Which among the following is NOT correct?
a) Floating exchange rate system works on the market mechanism
b) The system of floating exchange rate requires comprehensive government
intervention.
c) Floating exchange rate breeds uncertainties and speculation
d) Economic and political factors and value judgments influence the choice of the
exchange rate system
Answer
A
В
C.
o
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Answer 1

Answer:

A floating exchange rate is one that is determined by supply and demand on the open market. A floating exchange rate doesn't mean countries don't try to intervene and manipulate their currency's price, since governments and central banks regularly attempt to keep their currency price favorable for international trade.