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The exchange rate for that currency changes depending on the operations of the free market

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Which of e following best explains what happens to the exchange rate of a floating currency?

The exchange rate of a floating currency is determined by market forces, primarily supply and demand for that currency in the foreign exchange market. Factors such as interest rates, inflation, political stability, and economic performance influence these dynamics. When demand for a currency increases, its value rises; conversely, if demand decreases or supply increases, the currency's value falls. This continuous fluctuation reflects the relative economic conditions of the countries involved.


What best explains what happens when a currency is pegged to the us dollar?

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. ALSO Pegging a currency to the U.S. dollar gives that currency the same stability as the U.S. dollar, keeping its exchange rate from fluctuating too wildly.


Which of the following explains what happens when currency traders buy on?

They borrow money from their broker in order to make a larger currency purchase


Who best explains what happens in the currency exchange market?

The currency exchange market, or forex market, is best explained by supply and demand dynamics, influenced by factors such as interest rates, economic indicators, geopolitical events, and market sentiment. Traders and institutions react to these factors, leading to fluctuations in currency values. Additionally, theories like Purchasing Power Parity (PPP) and the Interest Rate Parity help elucidate long-term currency valuation trends and exchange rate movements. Overall, a combination of economic fundamentals and trader psychology drives the market's behavior.


Where will I get the most competitive rates of foreign currency exchanged?

The best currency exchange happens at the banks in Indonesia. They have the lowest rates as well as many currencies to choose from.

Related Questions

What best explains what happens to the exchange of a floating currency?

The exchange rate for that currency changes depending on the operations of the free market


Which if the following best explains what happens to the exchange rate of a floating currency?

The exchange rate of a floating currency is determined by market forces, primarily supply and demand for that currency in foreign exchange markets. Factors such as interest rates, inflation, political stability, and economic performance can influence these forces, causing the currency's value to fluctuate. When demand for a currency increases relative to others, its value rises, and vice versa. Consequently, the exchange rate can change frequently based on economic news and market sentiment.


Ask us of the following best explains what happens to the exchange rate of a floating currency?

It changes according to the supply of and demand for the currency. Buy Verified TikTok Accounts Buy Verified TikTok Accounts can be incredibly valuable for creators and brands. When your profile is verified, that adds an immediate sense of credibility. This encourages visibility and trust from both the creator and the user to engage and view additional content. The site is highly saturated, and difficulty arises without high levels of followers. A verified account provides you a competitive advantage, which can lead to beneficial collaboration and sponsorships that may not have been possible without it. If you need good quality and high quality accounts please contact us. If you face any problem you can contact us. we are online 24/7 hours WhatsApp:‪ +18702143223 Telegram: @usithornet


Which of e following best explains what happens to the exchange rate of a floating currency?

The exchange rate of a floating currency is determined by market forces, primarily supply and demand for that currency in the foreign exchange market. Factors such as interest rates, inflation, political stability, and economic performance influence these dynamics. When demand for a currency increases, its value rises; conversely, if demand decreases or supply increases, the currency's value falls. This continuous fluctuation reflects the relative economic conditions of the countries involved.


Which of following best explains what happens in the currency exchange market?

Sure — could you please share the options you’re referring to? Once I see them, I can tell you which one best explains what happens in the currency exchange market. If you need good quality and high quality accounts please contact us. If you face any problem you can contact us. we are online 24/7 hours Contact Info 📞 WhatsApp: +18702143223 ✈️ Telegram: @usithornet Buy PayPal Accounts PayPal is a giant money transaction website in todays time and its operating process is safe and easy to use wallet. There are some websites which can offer you different offers and advantages in transaction sector. We are dealing with old and new both PayPal account and all accounts are 100% safe verified. As the services of PayPal are provided everywhere around the globe, we intend that we will provide and sell our services everywhere around the world.This is the reason why we give all documentation for US verified PayPal account, UK verified PayPal accounts, German verified PayPal accounts, and other countries’ account.


What best explains what happens when a currency is pegged to the us dollar?

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. ALSO Pegging a currency to the U.S. dollar gives that currency the same stability as the U.S. dollar, keeping its exchange rate from fluctuating too wildly.


Which of the following explains what happens when currency traders buy on?

They borrow money from their broker in order to make a larger currency purchase


Who best explains what happens in the currency exchange market?

The currency exchange market, or forex market, is best explained by supply and demand dynamics, influenced by factors such as interest rates, economic indicators, geopolitical events, and market sentiment. Traders and institutions react to these factors, leading to fluctuations in currency values. Additionally, theories like Purchasing Power Parity (PPP) and the Interest Rate Parity help elucidate long-term currency valuation trends and exchange rate movements. Overall, a combination of economic fundamentals and trader psychology drives the market's behavior.


What happens when a currency is pegged to the U.S dollar?

The value of the pegged currency goes up and down depending on the exchange rate of the U.S. dollar. Pegging a currency to the U.S. dollar gives that currency the same stability as the U.S. dollar, keeping its exchange rate from fluctuating too wildly.


Where will I get the most competitive rates of foreign currency exchanged?

The best currency exchange happens at the banks in Indonesia. They have the lowest rates as well as many currencies to choose from.


What happens in the exchange currency market?

The Foreign exchange market or the Forex is the place where participants are able to exchange, sell, buy and speculate currencies. It is one of the world's largest trading area.


What happens in currency exchange market?

The Foreign exchange market or the Forex is the place where participants are able to exchange, sell, buy and speculate currencies. It is one of the world's largest trading area.