A system in which prices of different currencies move up and down based on the demand for and the supply of each currency is called a ________ exchange rate.
a. pegged
b. fixed
c. linked
d. floating
Answer: d. floating [exchange rate].
A system in which prices of different currencies move up and down based on the demand for and the supply of each currency is called a ________ exchange rate.
a. pegged
b. fixed
c. linked
d. floating
Answer: d. floating [exchange rate].