Since 2009 the IMF's Exchange Rate Regime Classification System Uses

question 26

Multiple Choice

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, currencies that are predominantly market-driven are considered to be:

• A) soft pegs.
• B) hard pegs.
• C) floating arrangements.
• D) a residual agreement.

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Definitions:

Voting Method

A voting method is a systematic procedure for aggregating individual preferences or votes to arrive at a collective decision or to select a winner among several options.

Screening

The process of evaluating the characteristics of people or things for the purpose of identifying those with a particular set of qualities or at risk of having certain problems.

Prior Knowledge

The information and understanding that an individual already possesses before learning new information or encountering a new experience.

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclic (i.e., A is preferred to B, B is preferred to C, and C is preferred to A), showing the non-transitivity of majority preferences.