Currency Markets Operate Under a System in Which the Prices

question 34

Multiple Choice

Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency.This practice is called:

• A) Countertrading.
• B) floating exchange rates.
• C) variable purchasing power.
• D) flexible monetary policies.
• E) purchasing power elasticity.

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Definitions:

Negotiable Instruments

Financial documents that guarantee the payment of a specified sum of money, either on-demand or at a set time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize statutes across the states to facilitate easier interstate commerce.

World Trade Organization

An international organization that regulates international trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.

United Nations Committee

A subsidiary body of the United Nations established to perform specific tasks, such as overseeing human rights or environmental protocols.