Which Is the Best Characterization of the Current International Payments

question 3

Multiple Choice

Which is the best characterization of the current international payments system?

• A) The World Bank and the IMF approve nations' exchange rate regimes and ensure that financial flows are not hampered by imbalances.
• B) All nations are now operating with floating exchange rates and free capital flows.
• C) The four richest industrial nations have floating exchange rates, while the rest of the nations peg to those currencies.
• D) There is no standard and no rules, and each nation chooses the regime that works best for its individual situation at the time.

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Definitions:

Negligently

A rephrased definition: Acting with a lack of proper care or attention that a reasonably prudent person would exercise in similar circumstances.

Negligently

Acting with a lack of proper care or attention, resulting in harm or injury to another person or property.

Relative Capital Contributions

The contributions, often in the form of money or assets, that partners make relative to one another in a partnership or investment setting.

Dissolved

The process of legally disbanding a corporation or partnership, effectively ending its existence.