Which of the Following Is Characteristic of the Fixed Exchange

question 56

Multiple Choice

Which of the following is characteristic of the fixed exchange rate system?

• A)utilized by most advanced economies
• B)rates based on supply and demand forces
• C)value of currency is set relative to the value of another
• D)allows for monetary policy flexibility

---

Definitions:

Reflexes

Built-in responses to certain stimuli that neonates need to ensure survival in their new world.

Temperament

A person’s behavioral style or characteristic way of responding to the environment.

Moro Reflex

An involuntary reflex found in infants, which is triggered by a sudden lack of support, causing the baby to feel as if it is falling.

Rooting Reflex

An automatic response seen in newborns, who turn their head toward anything that strokes their cheek or mouth, aiding in the act of breastfeeding.