The Exchange Rate System Currently Used by the Industrially Advanced

question 179

Multiple Choice

The exchange rate system currently used by the industrially advanced nations is

• A)the gold standard.
• B)the Bretton Woods system.
• C)the managed float.
• D)a fixed rate system.

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Definitions:

Indifferent

A state of having no preference between two or more outcomes or items.

Canadian Security

A financial instrument issued in Canada that represents an investment and provides evidence of debt, an equity stake, or a right to ownership in terms of stocks, bonds, or options.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in forward contracts.

Denominated

Describes a financial instrument that is specified in a particular currency.