In Saying That the Present System of Flexible Exchange Rates

question 133

Multiple Choice

In saying that the present system of flexible exchange rates is managed we mean that:

• A)countries which allow their exchange rate to move freely will lose their borrowing privileges with the IMF.
• B)the value of any IMF member's currency can only vary 2 percent from its par value.
• C)IMF officials determine exchange rates on a day-to-day basis.
• D)the central banks of various countries buy and sell foreign exchange to smooth out short-term fluctuations or undesirable trends in exchange rates.

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Definitions:

Internal Attribution

The process of assigning the cause of behavior to internal characteristics, traits, or dispositions of the individual rather than to external factors.

Aggressive Person

An individual who exhibits behavior that intends to cause harm or discomfort to others, often as a response to perceived threats or frustration.

External Cause

Factors that originate from outside an individual that can influence or trigger a particular outcome or effect.

Harold Kelley

A psychologist best known for his contributions to social psychology, particularly in the areas of attribution theory and interpersonal relations.