The Difference Between a Fixed and a Floating Exchange Rate

question 307

Multiple Choice

The difference between a fixed and a floating exchange rate regime is that with a _____ rate system, the _____, whereas with a _____ rate system it does not.

• A) fixed; central bank retains its ability to use independent monetary policy; floating
• B) floating; central bank retains its ability to use independent monetary policy; fixed
• C) fixed; government can use independent fiscal policy; floating
• D) floating; government can use independent fiscal policy; fixed

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Definitions:

Antigen Presenting Cells

Cells that display foreign antigens complexed with major histocompatibility complex molecules on their surfaces.

Progenitor

An ancestor or parent in a direct line of descent, or a cell that has the capacity to differentiate into a specific type of cell.

Plasma Cell

Cell that secretes antibodies; a differentiated B lymphocyte (B cell).

Dendritic Cells

Antigen-presenting cells that process antigen material and present it on the surface to T cells, playing a crucial role in the immune response.