A System Where Currency Values Fluctuate with Changes in Supply

question 40

Multiple Choice

A system where currency values fluctuate with changes in supply and demand, but where central banks may intervene if currency values are thought to be over- or under-valued is called a(n)

• A)fixed exchange rate system.
• B)floating (flexible) exchange rate system.
• C)managed float exchange rate system.
• D)international financial system.

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Definitions:

Sample Correlation

A measure that indicates the degree to which two variables change together, based on data drawn from a sample of the population.

Test Statistic

A value calculated from sample data during a statistical hypothesis test to determine the p-value or to compare against a critical value.

Prediction Interval

An estimated range of values within which a future observation is expected to fall, with a certain probability.

Independent Variable

A variable in an experiment or model that is manipulated or changed to assess its effects on a dependent variable.