Which Statement Is True of a World with a System

question 185

Multiple Choice

Which statement is true of a world with a system of fixed exchange rates as opposed to one with floating rates?

• A) It requires less world liquidity or reserves.
• B) It creates less confidence about future values of currencies.
• C) It facilitates the transmission of shifts in economic conditions between countries.
• D) It increases the role of the central banks in foreign exchange markets.

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Definitions:

Own Perspective

An individual's unique viewpoint or attitude towards a particular topic or situation based on personal experience and beliefs.

Freud's Psychoanalytical Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping behavior.

Adult Personality

The complex patterns of behaviors, feelings, and thoughts that constitute an adult individual’s distinctive character.

Genital Stage

A phase in Freudian psychosexual development occurring from puberty onwards, where sexual maturation is complete and sexual intercourse becomes a major goal.