A 'Fixed Exchange Rate System' Is One in Which

question 77

Multiple Choice

A 'fixed exchange rate system' is one in which:

• A)the currency is backed by a fixed amount of gold.
• B)the government defines its currency to be worth a certain amount in terms of another currency and ensures that the rate remains at that level.
• C)foreign exchange traders accept only a fixed price for their goods, regardless of the demand and supply for the currency.
• D)demand and supply adjust so that there are no shortages or surpluses of currency in the market.

---

Definitions:

Childrearing Years

The period in an adult's life dedicated to raising children, typically ranging from birth to the teenage years.

Newlywed

A person who has recently entered into marriage and is in the early stage of marital life.

Late Adulthood

A phase of life typically defined as beginning at the age of 65, characterized by significant changes in physical health, social roles, and cognitive function.

Financial Security

A state of having stable income or resources sufficient to cover one's living expenses without worry.