A 'Floating Exchange Rate System' Is One in Which

question 115

Multiple Choice

A 'floating exchange rate system' is one in which:

• A)the central bank intervenes in the currency exchange market to influence, but not fix, the exchange rate.
• B)trading firms establish the exchange rates for individual transactions in the foreign exchange market.
• C)the central bank allows private banks to manage their exchange rates.
• D)the central bank intervenes in the currency exchange market to fix the exchange rate.

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Definitions:

Conditional

Pertaining to an agreement or provision that stipulates an event or action must occur before a contract becomes effective or an obligation is fulfilled.

Stratified

Refers to the arrangement or classification of something into different layers, levels, or grades, often used in the context of social stratification.

Global Ranking System

An evaluative framework used to compare and rank entities, such as countries, institutions, or individuals, based on various criteria and metrics.

Colonized

Refers to the process or state of being under the control or influence of a foreign power, often implying exploitation and cultural imposition.