Which of These Is Defined as an Exchange Rate Regime

question 13

Multiple Choice

Which of these is defined as an exchange rate regime where the currency is completely determined by the foreign-exchange market through supply and demand?

• A) Foreign market regime
• B) Freely floating regime
• C) Currency market regime
• D) Managed-floating regime

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Definitions:

WTO

The World Trade Organization, an international body aimed at promoting and facilitating global trade and resolving trade disputes.

Globalization

The method through which companies or various organizations expand their influence globally or begin to function at an international level.

Exports

Commodities or services sent overseas for the objective of being sold or traded.

Opportunity Cost

The cost of an alternative that must be foregone in order to pursue a certain action. Essentially, the benefits you could have received by taking an alternative action.