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:

Sherman Act

A foundational statute in U.S. antitrust law prohibiting monopolistic behaviors and promoting competitive markets.

Tying Contracts

Legal agreements where the sale of one product is conditioned on the purchase of another product.

Clayton Act

A U.S. antitrust law, enacted in 1914, that prohibits certain actions leading to anti-competitiveness, such as price discrimination, exclusive deals, and mergers that significantly lessen competition.

FTC Act

The Federal Trade Commission Act is a piece of legislation, established in 1914, aimed at preventing unfair or deceptive business practices and promoting competition.