Which Exchange Rate System Requires an Immediate Response by a Government

question 17

Multiple Choice

Which exchange rate system requires an immediate response by a government to counter all market forces on exchange rates?

• A)The fixed exchange rate system
• B)The managed float exchange rate system
• C)The floating exchange rate system
• D)The Bretton-Woods exchange rate system

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Definitions:

Payable

Refers to amounts of money that a business or individual owes to another party and is required to pay, typically within a specified period.

Forge

To create a fake version of something, such as a document or signature, with the intent to deceive.

HDCs

Stands for Holders in Due Course, referring to parties holding a negotiable instrument free from certain defenses and claims.

Drawer

In banking, the person who writes or creates a check. In the context of furniture, it is a sliding storage compartment.