Question 1
Exchange rates that are determined by the unregulated forces of supply and demand are
◦ fixed exchange rates.
◦ pegged exchange rates.
◦ managed exchange rates.
◦ floating exchange rates.
Question 2
The most common reason for exchanging one currency for another is
◦ to purchase goods produced in another country.
◦ to engage in fixed capital investment in another country.
◦ to purchase stocks and bonds in another country.
◦ to engage in currency speculation.