The Use of Foreign Exchange Reserves to Keep Exchange Rates

question 167

Multiple Choice

The use of foreign exchange reserves to keep exchange rates constant over time is called

• A)a fixed exchange rate system.
• B)the Bretton Woods system.
• C)a fiscal fix.
• D)a floating exchange rate system.

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Definitions:

Trade Associations

Organizations founded and funded by businesses that operate in a specific industry, aimed at promoting their collective interests.

Commercial Banks

Commercial banks are financial institutions that offer a wide range of banking services to businesses and individuals, including deposit accounts, loans, and other financial products.

Accounting Firms

Professional service firms specializing in accounting, auditing, and financial advising for individuals and businesses.

Business Broker

A professional who assists in the buying and selling of businesses, acting as an intermediary between buyers and sellers.