Suppose a Nation Fixes the Exchange Rate of Its Currency

question 39

Multiple Choice

Suppose a nation fixes the exchange rate of its currency relative to a specific amount of
Gold. This system is an example of a

• A) managed float system.
• B) free-floating exchange rate system.
• C) commodity standard system.
• D) fiat standard system.

---

Definitions:

Skills

The ability to do something well, often as a result of knowledge, practice, and experience.

Sphere

A perfectly round geometrical object in three-dimensional space, like a globe or ball.

Metaphor

A figure of speech in which a term is applied to something to which it is not literally applicable to suggest a resemblance.

Critical Thinking Skills

The ability to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.