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Examveda

What basis the exchange rates are determined

A. supply

B. Demand

C. Demand and supply

D. Forex

Answer: Option C

Solution(By Examveda Team)

On demand and supply basis the exchange rates are determined. The demand–supply model of exchange rate determination implies that the equilibrium exchange rate changes when the factors that affect the demand and supply conditions change.

This Question Belongs to Management >> International Finance And Treasury

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