Quick Quiz: Determining Currency Exchange Rates

Question: How are current international exchange rates determined?
Answer: Current international exchange rates are determined by a managed floating exchange rate.
Question: What is the name of an exchange rate where each currency isn’t necessarily backed by a resource?
Answer: A floating exchange rate is an exchange rate where each currency isn’t necessarily backed by a resource.
Question: What are fixed exchange rates?
Answer: Fixed exchange rates use a standard, such as gold or another precious metal, and each unit of currency corresponds to a fixed quantity of that standard that should (theoretically) exist.
Question: Which controlled international exchange rates until the 1910s?
Answer: The gold standard controlled international exchange rates until the 1910s.
Question: What is a managed floating exchange rate?
Answer: A managed floating exchange rate means that each currency’s value is affected by the economic actions of its government or central bank.
Currency. Money. Cash. Dollars. Bills. Pile of ten, twenty, fifty, and hundred dollar bills.
Politics, Law & Government

Quick Quiz: Determining Currency Exchange Rates

5 Questions