A System in Which Currencies Float Against One Another,with Governments

question 36

Multiple Choice

A system in which currencies float against one another,with governments intervening to stabilize their currencies at particular target exchange rates is called a ________.

• A) managed float system
• B) linked exchange-rate system
• C) free float system
• D) fixed exchange-rate system

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Definitions:

Formal Operational

A stage in Jean Piaget's theory of cognitive development where individuals (typically 12 years and older) gain the ability to think abstractly, reason logically, and use deductive reasoning.

Abstract Principles

Fundamental ideas or theories that are theoretical in nature and not based on specific instances.

Hypothetical Possibilities

Imagined scenarios or conditions that can be considered when reasoning or planning without necessarily having a basis in reality.

Hierarchical Classification

A system of organizing entities into a graded series of levels based on characteristics or criteria, often used in biology for the classification of organisms.