Of the Following Exchange Rate Arrangements,in Which Does the Exchange

question 27

Multiple Choice

Of the following exchange rate arrangements,in which does the exchange rate fluctuate around a fixed central target rate while allowing a moderate amount of fluctuation?

• A)Independently floating
• B)Currency Board
• C)Horizontal Bands
• D)Fixed peg

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Definitions:

Marginal Benefit Curve

A graphical representation showing how the benefit to consumers changes with each additional unit consumed.

Total Benefit

The entire value or advantage received from consuming a good or service.

Marginal Benefit

The increased happiness or advantage someone gets from using another unit of a certain good or service.

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.