Under a System of Floating Exchange Rates, Changes in the Value

question 89

Multiple Choice

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of

• A) negotiated rate adjustments between the U.S. government and the World Trade Organization.
• B) decisions made by the Federal Reserve Board of Governors in order to implement monetary policy.
• C) fluctuations in the world price of gold.
• D) changes in the supply of and/or demand for dollars in the global currency market.

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