Managed Float System of Exchange Rates Refers to a System

question 54

Multiple Choice

Managed float system of exchange rates refers to a system in which currencies float against one another with:

• A)the G8 intervening only to stabilize the currencies at set target exchange rates.
• B)governments intervening only to stabilize their currencies at set target exchange rates.
• C)big business houses intervening only to stabilize the currencies at set target exchange rates.
• D)international financial institutions intervening only to stabilize the currencies at set target exchange rates.
• E)the developed countries intervening only to stabilize the currencies at set target exchange rates.

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Definitions:

Numbers Scratched Out

A phrase describing the physical action of removing or obliterating numbers written on a document, often implying an attempt to alter or correct information.

Holder in Due Course

Refers to a party who acquires a negotiable instrument in good faith and for value, thereby gaining certain protections against defects.

Legal Problem

Refers to an issue or dispute that involves laws, regulations, or the need for legal proceedings or advice.

Dishonor

The refusal or inability to pay a bill of exchange, promissory note, or another financial instrument when it is presented for payment.