The Current International Financial System Is a Managed Float Exchange

question 81

Multiple Choice

The current international financial system is a managed float exchange rate system because

• A)exchange rates fluctuate in response to,but are not determined solely by,market forces.
• B)some countries keep their currencies pegged to the dollar,which is not allowed to fluctuate.
• C)all countries allow their exchange rates to fluctuate in response to market forces.
• D)all countries peg their currencies to the dollar which is allowed to fluctuate in response to market forces.

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Definitions:

Illusory Promise

A statement that appears to be a promise but is too vague or lacks commitment to be legally binding and enforceable as a contract.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.

False Pretenses

The act of knowingly making untrue statements or deceiving others to obtain goods, money, or services unlawfully.

Mutual Exchange

An agreement where two parties exchange goods, services, or other considerations of value, with each party benefiting from the transaction.