Card 1 of 21
What determines the exchange rate in a freely floating system?
A
The demand for and supply of the currency on the foreign exchange market, without government intervention.
B
The government’s chosen target for the currency on the foreign exchange market, supported by regular intervention.
C
The central bank’s base interest rate on the foreign exchange market, without regard to currency trading.
D
The value of the country’s gold reserves on the foreign exchange market, without government intervention.
Card 1 of 21
2.6.4 Exchange rate systems Flashcards
21 flashcards on AQA A Level Economics 2.6.4 Exchange rate systems: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.