In Saying That the Present System of Flexible Exchange Rates

question 133

Multiple Choice

In saying that the present system of flexible exchange rates is managed we mean that:

• A)countries which allow their exchange rate to move freely will lose their borrowing privileges with the IMF.
• B)the value of any IMF member's currency can only vary 2 percent from its par value.
• C)IMF officials determine exchange rates on a day-to-day basis.
• D)the central banks of various countries buy and sell foreign exchange to smooth out short-term fluctuations or undesirable trends in exchange rates.

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Definitions:

Age

The length of time that a person or thing has existed.

Accident

An unexpected and unintentional incident, often causing injury or damage.

Restrictive Covenant

A clause in a contract or deed that limits what the owner of the property can do with it, often to preserve the value of adjacent land.

Minor

A person who is below the age of majority, legally considered a child and, in many contexts, does not have the full legal rights of an adult.