A System of Managed Floating Exchange Rates Is

question 39

Multiple Choice

A system of managed floating exchange rates is

• A) a system in which governments may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• B) a system in which governments use flexible exchange rates.
• C) a system in which governments are forbidden from attempts to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• D) a system in which governments need to reach a prior agreement among them before they may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• E) a system in which governments use extensive fiscal policy to discourage exchange rate movements.

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Definitions:

CPI

The Consumer Price Index represents a calculated average of the prices for a mix of consumer products and services, including food, transportation, and healthcare, weighted by their importance.

Geographic Extent

The area or scope over which a specific phenomenon, activity, or influence is spread.

Public Transit

Transportation services provided by public or private organizations that are available for use by the general public, typically involving buses, trains, and subways.

CPI Base Year

The reference year used in the calculation of the Consumer Price Index, serving as a comparison point for future price changes.