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:

Partnership

A type of business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Small Businesses

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The system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

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Limited Liability Companies are flexible forms of business structure that combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.