Under Flexible Exchange Rates, the Exchange Rate Is Set by

question 125

Multiple Choice

Under flexible exchange rates, the exchange rate is set by

• A) the International Monetary Fund.
• B) the U.S. Federal Reserve's Board of Governors.
• C) the intersection of demand and supply curves in the currency markets.
• D) negotiations among central banks of the major industrial powers.

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Definitions:

Competitive

Characterized by or showing a strong desire to be more successful than others in activities, sports, work, or any area of life.

Easygoing

Characterized by a relaxed, calm, and not easily upset or disturbed temperament.

Hostile

Showing or feeling opposition or dislike; aggressive.

Type A

A behavior pattern characterized by competitiveness, urgency, aggression, and impatience, which is associated with stress and heart disease.