Which System Would Be Accompanied by Occasional Currency Interventions by Central

question 15

Multiple Choice

Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses?

• A)the gold standard
• B)fixed exchange rates
• C)flexible exchange rates
• D)managed floating exchange rates

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Definitions:

Conditional Stimulus

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus, comes to elicit a conditioned response.

Unconditional Response

An automatic response to a stimulus that occurs naturally without any need for learning or conditioning.

Conditional Response

A learned reaction to a specific stimulus that does not naturally elicit that reaction, often developed through the process of conditioning.

Unconditional Stimulus

In classical conditioning, a stimulus that inherently triggers a reflexive response without the need for prior learning.