Which of the Following Is Not Considered a Result of the Flexible

question 4

Multiple Choice

Which of the following is not considered a result of the flexible exchange rate system?

• A)Future markets have been used to hedge exchange rate risk.
• B)Competition tends to set the rates.
• C)Exchange rates fluctuate on a daily basis.
• D)The exchange rate has been slow to change.

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or benefit from obtaining one more unit of a good or service as one consumes more of it.

Reese's Peanut Butter Cups

A popular type of candy consisting of a milk, white, or dark chocolate cup filled with peanut butter, marketed by The Hershey Company.

Apples

Edible fruits produced by an apple tree, commonly consumed worldwide and used in a variety of culinary dishes.

Budget Constraint

The limitation that the cost of a consumer’s consumption bundle cannot exceed the consumer’s income.