Under the Managed Floating System of Exchange Rates

question 76

Multiple Choice

Under the managed floating system of exchange rates,

• A)all exchange rates vary with changes in the free-market prices of gold.
• B)industrialized nations meet once each year to negotiate readjustments in their exchange rates.
• C)exchange rates are essentially flexible, but governments intervene to offset disorderly fluctuations in rates.
• D)exchange rates are adjusted at the discretion of the IMF.

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