The Reason for Calling the Current Exchange Rate System a "Managed

question 25

Multiple Choice

The reason for calling the current exchange rate system a "managed float" is

• A)it is managed by the IMF
• B)it is basically a misnomer because it is impossible to "manage" exchange rates
• C)it recognizes that there will be some intervention by central banks
• D)only the forces of supply and demand determine the exchange rates
• E)Congress passed a law declaring that the exchange rate system be legally termed "managed float"

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Definitions:

Annuity

A series of payments of a fixed amount for a specified number of periods.

Supplement Income

Additional income earned beyond the primary source of income, often used to meet extra expenses or save for future needs.

Going Rate

The current average or standard price for goods or services in a particular market or industry.

Lottery

A form of gambling involving the drawing of numbers at random for a prize.