A Flexible Exchange Rate System Is One in Which Countries

question 55

Multiple Choice

A flexible exchange rate system is one in which countries:

• A) allow their currencies to adjust continuously according to the demand and supply.
• B) do not allow their currencies to adjust continuously according to the demand and supply.
• C) allow their currencies to adjust according to the foreign policy.
• D) allow their currencies to adjust by fixing an exchange rate regular.

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Definitions:

Soviet

A governing council in the former Soviet Union, or a local workers' council in Russia pre- and post-Revolution.

Council

A body of elected or appointed members convened to deliberate and make decisions on administrative or legislative issues.

Georges Boulanger

Georges Boulanger was a French general and politician, known for his charismatic leadership and the political movement he sparked in the late 19th century, which threatened the stability of the Third Republic.

Third Republic

The government system of France from 1870 until the German occupation in 1940, characterized by a democratic parliamentary system.