Flexible Exchange Rates Exist When

question 55

Multiple Choice

Flexible exchange rates exist when

• A) no one knows what the true value of a currency is.
• B) governments and central banks spend foreign reserves to prop up an exchange rate at a certain level.
• C) exchange rates are determined by forces of supply and demand.
• D) speculators bet that a currency will soon be depreciated.

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Definitions:

Transparency

The characteristic of being transparent or see-through; in computing, it often refers to the ability of an image to show its background through designated areas.

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Written or printed words regarded as a piece of work.

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A presentation mode wherein a series of slides are displayed in sequence, commonly used in slideshow presentations.