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:

Cognitive Researcher

A scientist who studies the mental processes involved in perception, memory, thought, and problem solving to understand how people process and store information.

Cultural Psychologist

A professional in psychology who studies how cultural practices influence human behavior and thought processes.

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An individual who studies and theorizes about how people acquire knowledge, skills, habits, and attitudes.

Biological Psychologist

A scientist who studies the biological underpinnings of behavior, emotions, and mental processes.