Question

The U.S. dollar, EU euro, Japanese yen, and British pound are all free to float against each other, which means their exchange rates never fluctuate. Group of answer choices True False

Answer 1

Answer:

False

Explanation:

The U.S. dollar, EU euro, Japanese yen, and British pound are all free to float against each other because their exchange rates are not regulated by government but rather by the force of demand and supply. They have a fluctuating exchange rate which is determined by the demand for the currencies.

Answer 2

Answer:

False.

Explanation:

In the foreign exchange market, when the forces of demand and supply affect the price of currency then the concept here is known as Floating Exchange Rate. From the question we are given the currencies; U.S. dollar, EU euro, Japanese yen, and British pound. And these currencies and said that float against each other. These currencies exchange rates fluctuate because as demand of a currency increases then the value or the price of the currency increases and vice versa.