Why Is the Current Exchange Rate System Called a Managed

question 156

Multiple Choice

Why is the current exchange rate system called a managed float?  

• A) because the current exchange rate system is managed by the IMF 
• B) because the current exchange rate system is managed by the World Bank 
• C) because the current exchange rate system recognizes that there will be some intervention by central banks 
• D) because only the forces of supply and demand determine the exchange rates

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Definitions:

Oligopoly

A market structure characterized by a few firms dominating the market, which can lead to limited competition and potentially higher prices for consumers.

Conglomerate

A large corporation composed of diverse companies or divisions in varying industries under one corporate group.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Horizontal Merger

A merger occurring between companies in the same industry, often leading to consolidation and potentially impacting competition.