Which of the Following Is True of a Floating Exchange

question 24

Multiple Choice

Which of the following is true of a floating exchange rate policy?

• A) This policy sets the exchange rate of the domestic currency in terms of another currency.
• B) It prevents erratic fluctuations that may trigger macroeconomic turbulence.
• C) Exchange rate is allowed to fluctuate between an upper and lower range.
• D) Governments believe in the free market and allow it to determine exchange rates.

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Definitions:

Schizophrenogenic Mother

A now discredited theory suggesting that a cold and rejecting mother could cause schizophrenia in her child.

Frieda Fromm-Reichmann

A psychoanalyst known for her groundbreaking work in the treatment of schizophrenia and her concept of "the schizophrenogenic mother."

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Sociocultural Therapist

A mental health professional who incorporates sociocultural factors, including societal norms and cultural backgrounds, into the treatment of psychological disorders.