Exchange Rates That Are Allowed to Fluctuate in Response to Changes

question 76

Multiple Choice

Exchange rates that are allowed to fluctuate in response to changes in supply and demand is known as

• A) the foreign exchange markets.
• B) standard drawing rights.
• C) fixed exchange rates.
• D) flexible exchange rates.

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Definitions:

Alternative Fuels

Fuels other than traditional sources (like petroleum oils) used for transportation, including electric, hydrogen, biofuels, and natural gas, to reduce pollution and dependency on oil.

Electricity Generation

The process of producing electrical energy from primary energy sources, such as coal, natural gas, nuclear, solar, or wind.

Natural Gas

A fossil fuel formed from the decay of organic material over millions of years, used as a source of energy for heating, cooking, and electricity generation.

Hydropower

The generation of electricity by utilizing the energy of flowing water, typically by damming rivers to create reservoirs.