Under Flexible Exchange Rates

question 7

Multiple Choice

Under flexible exchange rates,

• A)capital flows allow countries to execute policies on their own with no domestic ramifications.
• B)incentives are present that promote monetary policy coordination between countries because without coordination there can be changes in exchange rates and capital flows that feed back to the domestic economy.
• C)there is presently no monetary policy coordination between developed countries.
• D)monetary policy coordination is presently led by the World Bank.

---

Definitions:

Independent Demand

The demand for a final product or service which is not directly related to the demand for other products or services within a supply chain.

Rivets

Metal pins or bolts used to fasten two pieces of material together, commonly used in construction, manufacturing, and aerospace industries.

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of stock to minimize total inventory costs, including holding and ordering costs.

Cost Per Order

A measure used to calculate the total cost associated with processing a single order, covering expenses from processing to shipping.