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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
Floating exchange rates are determined entirely by the market forces of supply and demand, unlike pegged, managed, or fixed exchange rates which involve some level of government control or intervention.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?
- 5.What term describes the value of one nation's currency expressed in the currency of another country?