Under a fixed exchange rate system, the exchange rate is

set by the government or central bank and kept thereCorrect answerYour answerset freely by demand and supplyCorrect answerYour answerchanged every day by banksCorrect answerYour answerset by exportersCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The authority announces a rate and buys or sells foreign currency to hold it.

Concept: Fixed exchange rate
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe fixed rate: devaluation and revaluation

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Under a fixed exchange rate system, the exchange rate is

Explanation