Question

Objectives
Choose and write the appropriate answer amon
below:
explains determination of exchange rate.
(a) Balance of payment
(b) Purchasing pow
(c) Balance of trade
(d) None of above​

Answer 1

Answer:

Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. Therefore, if the demand for the currency is high, the value will increase.