Question

Jarinia, a leading global economic power, lets the foreign exchange market determine the relative value of its currency, called the junid. Jarnia's exchange rate regime is called a ________ exchange rate.

Answer 1

Flexible

Step-by-step explanation:

A flexible exchange rate is one determined by the forces of market demand and supply. The apex bank of a country that practices this exchange rate regime never manages comes into the market to manage its currency price. The United States is an example of a flexible exchange rate system

A floating exchange rate is different from a managed floating exchange rate in that, managed floating sometimes allows a country's central bank to intervene in the Foreign exchange market in a bid to avoid the free fall of their local currency.

Nigeria is a good example of manged-floating exchange rate

Fixed exchange rate occurs when the central bank pegged the value of its currency against a vehicle currency.

Morocco is an example of a country that operates a fixed exchange rate system