Which of the Following Statements Is Not True in the Current

question 77

Multiple Choice

Which of the following statements is not true in the current exchange-rate system?

• A) Major currencies like the U.S. dollar, euro, pound, and yen operate mostly in a flexible system responding to supply and demand forces.
• B) Some developing nations peg their currencies to the dollar and allow their currencies to fluctuate with it relative to other currencies.
• C) Each country uses its own unique currency; for example, only the U.S. uses the U.S. dollar as its currency.
• D) Many nations peg their currencies to a "basket," or group, of other currencies, rather than to a single other currency.

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Definitions:

Consumptions

The process of using goods and services to satisfy wants or needs, often measured as an important component of economic activity.

Base Year

A base year is a specific year against which economic growth is measured, often used as a reference point for the calculation of index numbers.

Initial Endowment

The initial quantity of goods, services, wealth, or resources that an individual or entity possesses.

Health Care Reform

A process of changing policies, regulations, and practices to improve the quality, accessibility, and cost-effectiveness of health care systems.