Since 2009 the IMF's Exchange Rate Regime Classification System Uses

question 26

Multiple Choice

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, currencies that are predominantly market-driven are considered to be:

• A) soft pegs.
• B) hard pegs.
• C) floating arrangements.
• D) a residual agreement.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist renowned for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Higher Motives

Aspirations or desires that transcend basic physiological or safety needs, focusing instead on personal growth, fulfillment, and the well-being of others.

Drive Reduction Theory

A psychological concept that suggests motivation arises from the desire to reduce an uncomfortable internal state caused by unmet needs.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.