Q
In a floating exchange rate system ?
-
A
A. The government intervenes to influence the exchange rate
-
B
B. The exchange rate should adjust to equate the supply and demand of the currency
-
C
C. The balance of payments should always be in surplus
-
D
D. The balance of payments will always equal the government budget
Correct Answer:
B. B. The exchange rate should adjust to equate the supply and demand of the currency
