Most of the Major Currencies Have Had a Floating Exchange

question 25

Multiple Choice

Most of the major currencies have had a floating exchange rate system since

• A)1973.
• B)1944.
• C)1956.
• D)1971.

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Definitions:

U.S. Capital Account

Involves transactions that do not affect a country’s income, savings, or investments but consist mainly of international transfers of financial assets, such as loans and investments.

Ownership

The state or fact of having legal possession and control over property, whether it is tangible or intangible.

Net Unilateral Transfers

Financial transactions where money or goods are given without receiving anything in return, affecting a country's balance of payments, such as remittances or foreign aid.

Official Reserve

Assets held by a central bank in foreign currencies, gold, or other reserves, used to back liabilities and influence monetary policy.