Question

On what does Exchange Rate Determination depend?

a.

Historical data

b.

Demand and supply of a currency in the market

c.

Fundamental relationship between economic variables

d.

Market indicators

Answer: (b).Demand and supply of a currency in the market Explanation:Exchange Rate Determination depends on the demand and supply of a particular currency in the market.

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Q. On what does Exchange Rate Determination depend?

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