Which Statement Is True of a World with a System

question 275

Multiple Choice

Which statement is true of a world with a system of fixed exchange rates as opposed to one with floating rates?

• A)It requires less world liquidity or reserves.
• B)It creates less confidence about future values of currencies.
• C)It facilitates the transmission of shifts in economic conditions between countries.
• D)It increases the role of the central banks in foreign exchange markets.

---

Definitions:

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.

Accounting Records

Documents and books that keep track of all financial transactions of an entity.

Certification

A formal process by which an individual or system is verified to meet certain predefined criteria, often related to quality, education, or skills.

Accountants

Accountants are professionals who carry out accounting tasks, including auditing, financial statement analysis, and advice on financial planning.