Which of the following statements is not true in the current exchange-rate system?
A) Major currencies like the U.S. dollar, euro, pound, and yen operate mostly in a ﬂexible system responding to supply and demand forces.
B) Some developing nations peg their currencies to the dollar and allow their currencies to ﬂuctuate with it relative to other currencies.
C) Each country uses its own unique currency; for example, only the U.S. uses the U.S. dollar as its currency.
D) Many nations peg their currencies to a "basket," or group, of other currencies, rather than to a single other currency.

Question

Quizplus · Accepted Answer

It is not true that each country uses its own unique currency. For example, some countries in the Eurozone share the same currency (the euro).

Which of the Following Statements Is Not True in the Current