An Exchange-Rate System in Which the Exchange Rate for Converting

question 85

Multiple Choice

An exchange-rate system in which the exchange rate for converting one currency into another is set by international governmental agreement is called a ________ system.

• A) floating exchange-rate
• B) fixed exchange-rate
• C) cross rate
• D) spot rate

---

Definitions:

Slope

In mathematics, the slope represents the steepness or angle of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Simple Linear Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Least Squares

A mathematical method used to determine the best-fitting line through a set of data points by minimizing the sum of the squares of the differences between observed and estimated values.

Standard Deviation

A measure of the dispersion or variability of a set of data points around the mean, indicating how spread out the data points are.