What term describes when the US dollar the EU euro the Japan

What term describes when the U.S. dollar, the E.U. euro, the Japanese yen, and the British pound have the ability to freely fluctuate up and down in worth against each other? 1) Corresponding rate 2) Floating exchange rate regime 3) Pre-set exchange rate regime 4) Referenced exchange rate Save Question 10 (2 points) How have international exchange rates been described since 19737 1) Much more volatile 2) Mostly steady 3) Much less volatile 4) Somewhat Fixed

Solution

a) \"B\"

Floating exchange rate describes the situation where the exchange rate is determined by the demand and supply of the currency and they are able to float freely.

b) \"A\"

In1973 we abandoned the gold standard and adopted the floating exchange rate system. Since then the exchange rates are much more volatile.