A fixed exchange rate regime means the currency price is set by the forex market based on supply and demand.
举一反三
- In a commodity economy, the relationship among value, price, supply and demand is ( ) A: Prices are influenced by supply and demand and fluctuate around value B: Price is determined by value, reflecting value but not supply and demand C: Price is affected by value and changes with supply and demand D: Price is determined by value, reflecting value and supply and demand E: Price is determined by value, and affected by supply and demand. It also restricts supply and demand
- The market price of one currency in terms of another currency is also known as A: the exchange rate between those currencies. B: the future rate between those currencies. C: the spot market. D: the value of arbitrage.
- In order to maintain exchange rate stability, central banks often intervene in the foreign exchange market by buying and selling foreign exchange. When the local currency exchange rate (), they sell foreign exchange and withdraw local currency. A: depreciates B: appreciates C: is fixed D: none of the above
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate