A Currency Value That Is Fixed Relative to a Reference

question 20

Multiple Choice

A currency value that is fixed relative to a reference currency is called what?

• A) fixed exchange rate
• B) dirty-float system
• C) floating exchange rate
• D) banking exchange rate
• E) pegged exchange rate

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Definitions:

Intermediaries

Entities or people who act as a middleman or agent between two parties in a financial transaction or negotiation.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, such as a bank or investment firm.

Fund Manager

An individual responsible for making investment decisions for a portfolio of securities, implementing investment strategies for a mutual fund or institutional investor.

Shareholders

Individuals or entities that own shares in a corporation and therefore have an ownership interest in the company.