Because Central Banks Have Not Been Willing to Give Up

question 25

Multiple Choice

Because central banks have not been willing to give up their option of intervening in the foreign exchange market,the current international financial system can best be described as a

• A)variable-pegged exchange rate system.
• B)moving-pegged exchange rate system.
• C)hybrid of a fixed exchange rate and flexible exchange rate system.
• D)flexible-exchange,dollar-pegged exchange rate system.

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Definitions:

Phobic Reactions

Excessive and irrational fear responses to specific objects, situations, or activities, leading to avoidance behavior.

Obsessive-Compulsive Disorder

A disorder characterized by unwanted repetitive thoughts (obsessions) and/or actions (compulsions).

Compulsive Behaviors

Actions repeatedly performed in a ritualistic manner, often in response to an obsessive thought or anxiety, despite a desire to resist them.

Reinforcement

In behavioral psychology, the process of encouraging or establishing a pattern of behavior by offering rewards or consequences.