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which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? clean float rate policy fixed rate policy flexible rate policy floating rate policy

Respuesta :

The policy that use to determine the exchange rate in relationship to another country's currency if they do not rely on market forces is floating rate policy. A floating exchange rate or also known as floating rate policy can be defined as a regime where the currency price of a nation is set by demand relative to other currencies and the forex market based on supply.

There are several types of exchange rate policies, such as:

  1. floating rate policy
  2. soft peg rate policy
  3. hard peg rate policy
  4. merged currencies rate policy

Floating rate policy has several benefits, such as their stability in the balance of payments (BOP) and Foreign exchange is unrestricted.

Learn more about floating exchange rate here https://brainly.com/question/28272902

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