An Exchange Rate Determined Primarily by Market Forces Is Called

question 132

Multiple Choice

An exchange rate determined primarily by market forces is called a:

• A) floating exchange rate.
• B) fixed exchange rate.
• C) managed float.
• D) forced market rate.

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Definitions:

Hindsight Bias

The inclination to see events as having been predictable, after they have already occurred.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that affirms someone's already held beliefs or assumptions.

Selection Bias

A statistical bias in which there is an error in choosing the individuals or groups to participate in a study, leading to results that are not representative of the broader population.

Intervention Bias

The tendency to intervene in situations where intervention may not be necessary or could lead to negative outcomes.