The Most Important Feature of a Floating Exchange-Rate System Is

question 20

Multiple Choice

The most important feature of a floating exchange-rate system is that

• A) markets establish the values for currencies.
• B) central banks establish the values for their currencies.
• C) governments establish the values for gold and silver.
• D) governments establish the fixed values for their currencies.
• E) governments buy and sell their currencies.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality.

Psychosexual Stages

A Freudian theory that developmental stages occur from birth to adulthood, focusing on erogenous zones that drive pleasure-seeking behaviors.

Chronological Order

The arrangement of events in the order they occurred in time.

Latency

Latency refers to the delay or period of inactivity between a stimulus and its corresponding response.