A major determinant of floating exchange rate is

  • A the highest denomination of the currency
  • B an Act of the parliament
  • C the system of government
  • D the forest of demand and supply
jamb 2014economics

The correct answer is D. the forest of demand and supply

A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.

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