All of the Following Are True Concerning the Flexible Exchange

question 171

Multiple Choice

All of the following are true concerning the flexible exchange rate system except one.Which is the exception?

• A)It is the same as a floating exchange rate system.
• B)It is a system in which supply and demand determine the exchange rate.
• C)Government officials have little direct role in the foreign exchange market.
• D)Exchange rates may fluctuate considerably from time to time.
• E)Exchange rates are fixed by the central banks of the various countries.

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Definitions:

Liver

A vital organ in the body responsible for numerous functions, including detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Pharynx

The part of the throat behind the mouth and nasal cavity, responsible for the passage of food to the esophagus and air to the larynx.

Esophagus

A muscular tube that conveys food from the mouth to the stomach.

Mouth

The opening in the body of most animals through which food is taken in, beginning the process of digestion.