A Fixed Exchange Rate Is Enforced by

question 23

Multiple Choice

A fixed exchange rate is enforced by

• A)national governments, who establish appropriate trade barriers for each country with whom they trade
• B)national governments, who manipulate gold reserves appropriately
• C)central banks, who buy and sell appropriate currencies
• D)the International Monetary Fund, which offers loans to appropriate countries
• E)local governments, who manipulate capital reserves appropriately

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Definitions:

Illegal Drug Use

The consumption of substances that are prohibited by law.

Proxy Variable

An alternative that is used to stand in for a variable that cannot be directly measured or is not readily available.

Anthill

A mound formed above the ground by ants as they excavate tunnels for their nests.

Proxy Variable

A variable used in place of another variable that is not directly measurable or accessible, often because of practical limitations.