Which of the Following Is True

question 21

Multiple Choice

Which of the following is true?

• A)The present international monetary system can be correctly called a floating (flexible) exchange rate system because market forces are the only factor affecting exchange rates.
• B)The fixed exchanged rate system established by the Bretton Woods Accord broke down in the early 1970s and resulted in the establishment of a managed floating exchange rate system.
• C)Since the creation of the managed float system, smaller countries no longer fix the value of their currencies to the value of other major currencies.
• D)All of the above are true.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Grain Surplus

An excess amount of grain production over the demand, leading to stored or wasted grain.