[Answer] Which of the following is true of any two free-floating currencies on the foreign exchange market when considered in terms of each other?

Answer: The appreciation of one currency necessarily means the depreciation of the other.
Which of the following is true of any two free-floating currencies on the foreign exchange market when considered in terms of each other?

In macroeconomics and economic policy a floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which a currency’s value is allowed to fluctuate in response to foreign exchange market events. A currency that uses a floating exchange …

Fri Feb 13 2009 13:30:00 GMT-0500 (Eastern Standard Time) · A fixed exchange rate sometimes called a pegged exchange rate is a type of exchange rate regime in which a currency’s value is fixed or pegged by a monetary authority against the value of another currency a basket of other currencies or another measure of value such as gold.. There are benefits and risks to using a fixed exchange rate system. A fixed exchange rate is typically used to …

Floating exchange rate – Wikipedia

Foreign exchange market – Wikipedia

Purchasing power parity – Wikipedia

Forward exchange rate – Wikipedia

Mon May 10 2004 14:30:00 GMT-0400 (Eastern Daylight Time) · The foreign exchange market (Forex FX or currency market ) is a global decentralized or over-the-counter (OTC) market for the trading of currencies .This market determines foreign exchange rates for every currency. It includes all aspects of buying selling and exchanging currencies at current or determined prices. In terms of trading volume it is by far the largest market in the world …

Foreign exchange risk (also known as FX risk exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a curr…

Leave a Reply