Which of the Following Is the Reason the Current Foreign

question 84

Multiple Choice

Which of the following is the reason the current foreign exchange system is sometimes thought of as a managed-float system?

• A) The exchange rates of a currency are determined by market forces.
• B) Governments intervene frequently in the foreign exchange market.
• C) Major currencies are allowed to freely float against each other.
• D) Countries use a reference currency to estimate the value of their currencies.

---

Definitions:

Pollution Damage

The harmful impact of pollutants on the environment, human health, and the economy.

Marginal Social Cost

The cumulative expense incurred by society for creating one more unit of a product or service, encompassing both direct private costs and any external effects.

Garbage Recycled

The process of collecting, processing, and reusing materials that would otherwise be thrown away as trash.

Payment Plan

An arrangement between a seller and a buyer that allows the buyer to pay off a purchase over time in instalments.