Because Central Banks Have Not Been Willing to Give Up

question 25

Multiple Choice

Because central banks have not been willing to give up their option of intervening in the foreign exchange market,the current international financial system can best be described as a

• A)variable-pegged exchange rate system.
• B)moving-pegged exchange rate system.
• C)hybrid of a fixed exchange rate and flexible exchange rate system.
• D)flexible-exchange,dollar-pegged exchange rate system.

---

Definitions:

Basic Economic Questions

Fundamental questions every economy must answer regarding what to produce, how to produce it, and for whom it is produced.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, reflecting a growing economy.

Outward Shift

In economics, refers to the movement of a curve away from the origin on a graph, typically illustrating growth or increase in factors like production possibility frontier or supply curve.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of new products or processes.