Which of the Following Statements Is Not True of Fixed

question 28

Multiple Choice

Which of the following statements is not true of fixed and flexible exchange rate systems?

• A)Under fixed exchange rates, government officials have little direct role in the foreign exchange market.
• B)Under fixed exchange rates, the government must select an appropriate exchange rate.
• C)Under fixed exchange rates, active central bank intervention is necessary to maintain the fixed exchange rate.
• D)Under fixed exchange rates, the governments must stand ready to buy all foreign exchange offered to it and supply all foreign exchange demanded from it.
• E)Flexible exchange rates rely on market forces to set the exchange rate, but fixed exchange rates are set by central banks.

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Definitions:

Agency Shop

is a workplace where employees are not required to join the union, but must still pay union dues as the union negotiates on behalf of all employees.

Right-to-work States

States in the USA where laws prohibit union security agreements, allowing employees to work without being compelled to join a union.

Unionize Workers

The process by which workers come together to form a union in order to negotiate collectively with their employers.

Government Agencies

Organizations that are part of the government and implement laws, regulations, and government policies.