3455EconomicsMedium
In a floating exchange rate system?
AThe exchange rate should adjust to equate the supply and demand of the currency
BThe Balance of payments will always equal the government budget
CThe government intervenes to influence the exchange rate
DThe Balance of payments should always be in surplus
Correct answer
A. The exchange rate should adjust to equate the supply and demand of the currency
Explanation
The correct answer is The exchange rate should adjust to equate the supply and demand of the currency.