A Fixed Exchange Rate Regime

question 98

Multiple Choice

A fixed exchange rate regime:

• A)modeled along the lines of the Bretton Woods system will not work.
• B)allows each country to choose its own inflation rate.
• C)is characterized by speculation that adds to the uncertainty surrounding future currency movements.
• D)leads to a situation where governments under political pressures expand monetary supply too rapidly,causing unacceptably high price inflation.

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Definitions:

Accountable

Being responsible for one's actions or decisions, often implying a willingness to explain or be judged for them.

Anonymous

This term describes something or someone whose name is not known or not made public, often used in situations requiring privacy or confidentiality.

Deindividuation

It refers to the phenomenon where people in groups feel less accountable for their actions, which can result in an increase in impulsive and deviant acts due to a sense of anonymity.

Negative

Referring to a condition lacking in positive attributes, or characterized by the absence rather than the presence of distinguishing features.