A System Whereby One Currency Is Maintained Within Specified Boundaries

question 3

Multiple Choice

A system whereby one currency is maintained within specified boundaries of another currency or unit of account is a

• A)pegged system.
• B)free float.
• C)dirty float.
• D)managed float.

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Definitions:

Equilibrium Price

The market price at which the supply of an item equals the demand for the item, leading to a stable market condition.

Digital Cameras

Electronic devices used to capture and store photographs in digital format.

Sensors

Devices or modules that detect and respond to physical or environmental conditions, converting them into signals that can be measured or analyzed.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.