With the Enactment of a Flexible Exchange Rate System in Late

question 41

Multiple Choice

With the enactment of a flexible exchange rate system in late 1974,

• A)countries gained greater independence in establishing their own monetary policies.
• B)exchange rate risk was sharply curtailed.
• C)Bretton Woods achieved its greatest influence.
• D)foreign exchange forward and futures contracts no longer were needed.

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Definitions:

Goodwill

A business’s reputation and ongoing relations with customers and product identification.

Enforceable

Capable of being imposed or complied with; in legal context, describes a contract or provision that can be legally executed or acted upon.

Void Contract

A contract that lacks legal validity and enforceability from the outset, meaning it has no legal effect and cannot be enforced by either party.

Infant

A very young child, especially one newly or recently born.