Some countries rely on the foreign exchange market to determine the relative value of its currency. This is called a __________ exchange rate system.单项选择题
A
pegged
B
fixed
C
forward
D
nominal
E
floating

Question

Some countries rely on the foreign exchange market to determine the relative value of its currency. This is called a __________ exchange rate system.

BlackTom AI · Accepted Answer

A floating exchange rate system lets supply and demand in the foreign exchange market determine a currency’s value without a government or central bank fixing the rate.

1) Relevant knowledge points and concepts
- Exchange rate regimes: fixed (or pegged) vs. floating. In a fixed/pegged system, authorities set and maintain an exchange rate against another currency or a basket. In a floating system, market forces (foreign exchange supply and demand) set the rate. A managed (or dirty) float is a variant where authorities occasionally intervene. “Forward” is a type of contract, not a regime. “Nominal” describes the unadjusted value (nominal vs. real exchange rate), not a regime type.

2) Step-by-step reasoning
- The question states the country “relies on the foreign exchange market to determine the relative value of its currency.” That phrase means the currency’s price is set by market transactions (buyers and sellers of currency).
- Which regime matches that description? A floating exchange rate is defined exactly as a system where market forces determine the rate.
- Evaluate each option against that definition.

3) Intermediate logical steps (no numerical calculations needed)
- Pegged: implies deliberately tying the currency to another — not market-determined.
- Fixed: implies an official set rate — not market-determined.
- Forward: is a contract for future delivery of currency — not an exchange-rate system.
- Nominal: an attribute (nominal value), not a regime.
- Floating: explicitly market-determined.

4) Why the correct answer is correct
- “Floating” directly corresponds to the mechanism described: relying on the foreign exchange market to set the exchange rate. Market participants’ trades cause appreciation or depreciation according to supply and demand.

5) Why the other options are incorrect (brief)
- Pegged/fixed: require official stabilization against another currency; contradict “relies on the market.” Forward: financial instrument, not a regime. Nominal: descriptive term for value, not a system.

6) Conclusion
The correct answer is floating, which matches the provided answer.

Some countries rely on the foreign exchange market to determine the relative value of its currency. This is called a __________ exchange rate system.单项选择题

类似问题

A floating (flexible) exchange rate is

A floating (flexible) exchange rate is一种可浮动的（灵活的）汇率制度。

A floating exchange rate is

Question at position 8 An excess of growth hormone (GH) before puberty can result in the development ofgigantism.Graves' disease.acromegaly.pituitary dwarfism.Clear my selection

Question at position 6 The most abundant supporting cells in the central nervous system are called Question Blank 1 of 1[input].

Question at position 5 In the eye, the lens functions tofocus light on the retina at the back of the eye.protect the surface of the eye.increase vision in low-light conditions.move the eye side to side.Clear my selection

Question at position 4 Olfactory (odor) receptors are chemoreceptors. TrueFalse

If the pKa of HCHO2 is 3.74 and the pH of an HCHO2/NaCHO2 solution is 3.00, which of the following is TRUE?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单