All of the Following Are True Concerning the Flexible Exchange

question 171

Multiple Choice

All of the following are true concerning the flexible exchange rate system except one.Which is the exception?

• A)It is the same as a floating exchange rate system.
• B)It is a system in which supply and demand determine the exchange rate.
• C)Government officials have little direct role in the foreign exchange market.
• D)Exchange rates may fluctuate considerably from time to time.
• E)Exchange rates are fixed by the central banks of the various countries.

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Definitions:

Action Potential

A rapid rise and fall in electrical potential across a cell's membrane, resulting in nerve signal transmission.

Myelinated Neurons

Neurons covered with myelin sheath, enhancing the speed at which electrical impulses propagate along the nerve fiber.

Neural Transmission

The process by which neurons communicate with each other through synapses, using chemical or electrical signals.

Myelinated Axons

Axons that are coated with a protective layer of myelin, which helps to speed the transmission of electrical signals along the nerve cells.