Which of the Following Statements Is Not True of Fixed

question 28

Multiple Choice

Which of the following statements is not true of fixed and flexible exchange rate systems?

• A)Under fixed exchange rates, government officials have little direct role in the foreign exchange market.
• B)Under fixed exchange rates, the government must select an appropriate exchange rate.
• C)Under fixed exchange rates, active central bank intervention is necessary to maintain the fixed exchange rate.
• D)Under fixed exchange rates, the governments must stand ready to buy all foreign exchange offered to it and supply all foreign exchange demanded from it.
• E)Flexible exchange rates rely on market forces to set the exchange rate, but fixed exchange rates are set by central banks.

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Definitions:

Subcutaneous Emphysema

The presence of air or gas in the subcutaneous layer of the skin, often resulting from injury or surgery.

Primary Care Provider

A healthcare professional who acts as a first point of consultation for all patients within the health care system.

Intercostal Space

The anatomical area between two ribs, through which nerves, blood vessels, and muscles run, important in respiratory movement.

Pneumothorax

The accumulation of air or gas in the chest cavity, which can lead to lung collapse.