Which System Would Be Accompanied by Occasional Currency Interventions by Central

question 15

Multiple Choice

Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses?

• A)the gold standard
• B)fixed exchange rates
• C)flexible exchange rates
• D)managed floating exchange rates

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Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Adjustment

The process of adapting or becoming better suited to a particular situation or set of conditions.

Pressure

Pressure is the sense of urgency or stress experienced by an individual in response to high demands, expectations, or external forces, often affecting performance and decision-making.

Frustration

Frustration is an emotional response to opposition, related to anger, annoyance, and disappointment, caused by an inability to achieve something or by a perceived lack of control over a situation.