In the Current Exchange Rate Arrangements of IMF Members

question 27

Multiple Choice

In the current exchange rate arrangements of IMF members,

• A) a substantial number of countries do not have a freely floating exchange rate.
• B) the European Union countries fix their exchange rates against the U.S. dollar.
• C) no countries are tied or "pegged" to the U.S. dollar.
• D) no developing country allows its currency to "float."

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Definitions:

Symptom of Groupthink

A sign or manifestation of groupthink, which is the practice of thinking or making decisions as a group in a way that discourages creativity or individual responsibility.

Self-Censorship

The practice of voluntarily withholding one's opinions or information in the public sphere due to fear of social or official repercussions.

Self-Appointed Mindguards

Members of a decision-making group who take it upon themselves to protect the group from dissenting information that might disrupt consensus or harmony.

Abilene Paradox

A situation where a group collectively decides on a course of action that is counter to the preferences of many, if not all, of the members of the group.