Which of the Following Statements Is True About the Current

question 119

Multiple Choice

Which of the following statements is true about the current monetary system?

• A)Use of instruments such as the forward market and swaps has decreased since the breakdown of the Bretton Woods system.
• B)The present monetary system lacks the volatile movements in exchange rates that existed in a fixed exchange rate system.
• C)The current foreign exchange market works exactly as depicted in the purchasing power parity theory.
• D)Instruments such as the forward market and swaps increase the foreign exchange risk a company faces.
• E)A combination of government intervention and speculative activity drives the current foreign exchange market.

---

Definitions:

Depressive Disorder

A mental disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Mood Disorders

A category of mental health disorders characterized by a serious change in mood that cause disruption to life activities, examples include depression and bipolar disorder.

Influential People

Individuals who have the power to impact opinions or actions of others through their actions, status, or expertise.

Political Leaders

Individuals who hold positions of authority in government and influence public policy and decision-making.