_ rate variations can affect the equilibrium exchange rate.

Related MCQs

• When supply of foreign exchange is increased given the demand for foreign exchange, the rate of exchange _.
• Flexible exchange rate system, the exchange rate is determined by _     
• The degree of _ achieved affect the exchange rate.
• When demand for foreign exchange increases, the exchange rate _.
• According to classical economists, variations in savings are due to:
• Demand for foreign exchange varies _ with the exchange rates.
• Interest rate differentials the exchange rate.
•     _ means a decline in the rate of exchange of one country in terms of another’s.
• According to _ theory, the exchange rate between two currencies is determined by their purchasing power.
• The countries of the world are following the exchange rate system.