Rearrange the steps involved in determining the exchange rate under a flexible system:
(A) Demand for foreign currency increases
(B) Currency appreciates
(C) Supply of foreign currency increases
(D) Market forces (demand and supply) adjust the exchange rate
Choose the correct answer from the options given below:
1
(A), (C), (D), (B)
2
(A), (D), (C), (B)
3
(D), (A), (B), (C)
4
(C), (A), (D), (B)