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.

---

Definitions:

Covariance

A measure that indicates the extent to which two variables change together, indicating the direction of their linear relationship.

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other.

COV

COV refers to the coefficient of variation, a statistical measure of the relative dispersion or variability of a data set relative to its mean, expressed as a percentage.

Covariance

A measure that indicates the extent to which two variables change together; positive covariance indicates that both variables tend to move in the same direction.