A Floating Exchange Rate Regime Is One

question 52

Multiple Choice

A floating exchange rate regime is one:

• A) which limits exchange rate movements within a band that is set by the major banks.
• B) which limits exchange rate movements within a band that is set by the central bank.
• C) exchange rate for a currency is allowed to move as factors of supply and demand dictate.
• D) which limits exchange rate movements within a band that is set by the major FX traders.

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Definitions:

Universal Milestones

Developmental stages or achievements that are common to all humans, typically used to track growth and development across populations.

Adaptation

The process by which organisms adjust and change over time in response to environmental changes.

Moro Reflex

An involuntary reflex found in newborns, which is triggered by a sudden lack of support and involves the baby spreading its arms, unspreading them, and crying, usually to embrace.

Sensory Skills

Abilities related to receiving and processing sensory information through sight, sound, touch, taste, and smell.