The Present Floating Exchange Rate System Is Not a Totally

question 15

Multiple Choice

The present floating exchange rate system is not a totally free float because:

• A) there is an exchange fee of 1.5 to 1.75 percent.
• B) some governments refuse to allow foreign traders to trade their currency.
• C) some central banks from time to time intervene in the market to buy or sell large amounts of currency to affect the supply and demand of a particular currency.
• D) A and B.

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