When the Value of a Currency Is Determined Mostly by Demand

question 169

Multiple Choice

When the value of a currency is determined mostly by demand and supply,but with occasional government intervention,the exchange rate system is defined as

• A)fixed.
• B)floating.
• C)managed float.
• D)Bretton Woods.

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Definitions:

Government Tax Revenue

Funds collected by the government from taxes imposed on individuals and businesses, used to fund public services and infrastructure.

Domestic Price

The price at which goods and services are sold within a country’s borders, influenced by local demand and supply conditions.

Tariff

A tariff is a tax imposed by a government on imported or exported goods, often used to protect domestic industries or generate revenue.

Import-Competing Clauses

Provisions that protect domestic industries by limiting or imposing conditions on the import of similar foreign goods.