WAEC Economics 2021 Objective — Question 41
Question 41 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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41. A floating exchange rate means that the exchange rate is fixed by the
- A. central bank of the country.
- B. forces of demand and supply.Correct
- C. International Monetary Fund (IMF).
- D. Ministry of Finance.
Explanation
Under a floating exchange rate system, the rate is determined by market forces — the interaction of demand and supply for the currency.
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