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:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies from agrarian to industrial.

Economic System

An economic system is the structured way a society allocates resources, distributes goods and services, and facilitates production and consumption patterns among its population.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Anomie

A condition of instability resulting from a breakdown of standards and values or from a lack of purpose or ideals within a society.