The Present Floating Exchange Rate System Was

question 81

Multiple Choice

The present floating exchange rate system was:

• A) designed by the IMF and implemented flawlessly in 1973.
• B) established by the major trading nations in 19721 after Nixon closed the gold window.
• C) implemented in tandem with a reintroduction of the gold standard.
• D) established after several trials in which central bankers set rates incorrectly and speculators corrected them in the markets, and it was formalized after the fact in the IMF's Jamaica Agreement.

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Definitions:

Cumulative Voting

A voting system that allows shareholders to concentrate all their votes on one candidate for the board of directors, offering more power to minority shareholders.

Anticipating Dividends

This refers to investors' expectation or estimation of the dividends that will be declared and paid by companies in the future.

Dividend Growth Rate

The rate at which a company's dividends increase over a period.

Rate of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s initial cost.