All of the Following Are True Concerning the Flexible Exchange

question 171

Multiple Choice

All of the following are true concerning the flexible exchange rate system except one.Which is the exception?

• A)It is the same as a floating exchange rate system.
• B)It is a system in which supply and demand determine the exchange rate.
• C)Government officials have little direct role in the foreign exchange market.
• D)Exchange rates may fluctuate considerably from time to time.
• E)Exchange rates are fixed by the central banks of the various countries.

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