The System Under Which Exchange Rates or Par Values Are

question 3

Multiple Choice

The system under which exchange rates or par values are periodically changed to correct balance-of-payments disequilibria is known as a(n) :

• A)currency board arrangements
• B)adjustable peg system
• C)crawling peg system
• D)managed floating exchange rate system

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Definitions:

Governmental Functions

Activities and responsibilities carried out by a government, typically including legislation, law enforcement, and provision of public services.

Assignment

The transfer of rights, property, or duties from one party to another.

Delegation

The act of assigning responsibility or authority to another person to carry out specific duties.

Third-Party Beneficiary

An individual or entity that, while not a direct party to a contract, is intended by the contracting parties to benefit from it.