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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Definitions:

Immediate Consequences

The direct and instant outcomes or results that follow a specific behavior or action.

Reactive Effects

Changes in behavior that occur as a result of being observed or knowing that one is being studied, often considered in psychological and social research.

Talk-Outs

Interventions or strategies in which individuals vocalize thoughts, feelings, or conflicts as a means to resolve issues or reduce emotional distress.

Cognitive Model

A psychological model focusing on understanding how thoughts, beliefs, and attitudes influence emotions and behavior.