The Reason the Current Exchange Rate System Is Called a "Managed

question 33

Multiple Choice

The reason the current exchange rate system is called a "managed float" is that:

• A)it is managed by the IMF.
• B)it is basically a misnomer.
• C)it recognizes that there will be some intervention by central banks.
• D)only the forces of supply and demand determine the exchange rates.
• E)Congress passed a law declaring that the exchange rate system be legally termed "managed float."

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Definitions:

Subtropics

Geographical zones located directly north and south of the tropics, approximately centered on 30°S and 30°N.

Equator

An imaginary line around the Earth equidistant from the poles, dividing it into northern and southern hemispheres and marking the 0-degree latitude line.

Tropical Rain Forest

A dense, warm, wet forest biome found near the equator, known for its high biodiversity and significant rainfall.

High Annual Rainfall

A climatic condition where a region receives a significantly large amount of precipitation over the course of a year.