A Flexible Exchange Rate Policy

question 48

Multiple Choice

A flexible exchange rate policy

• A)is one in which the central bank has flexibility in determining exchange rates.
• B)has not been used in the United States since the Great Depression.
• C)is one in which the exchange rate is determined in the foreign exchange market.
• D)gives the president the power to determine exchange rates when negotiating free trade agreements with other countries.
• E)has been adopted universally throughout the world economy.

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Definitions:

Decentration

A cognitive ability to consider multiple aspects of a situation rather than focusing on just one.

Conservation

The principle that physical properties of objects, such as volume and mass, remain constant despite changes in their form or appearance.

Seriation

The cognitive ability to organize objects or items in a logical order, such as by size, number, or volume, essential in early childhood development.

Transitivity

In mathematics and logic, transitivity is a property of binary relations that if an element A is related to B, and B is related to C, then A is also related to C.