Institutional arrangements that countries adopt to govern exchange rates refers to
A)floating interest rate.
B)international exchange rate.
C)fixed inflation rate.
D)dirty float.
E)international monetary system

Question

Quizplus · Accepted Answer

Institutional arrangements that countries adopt to govern exchange rates refer to the international monetary system, which encompasses the agreed-upon rules, policies, and institutions that facilitate international trade and investment while also regulating exchange rates between currencies. This can include fixed exchange rates, floating exchange rates, or a combination of both, as well as international organizations like the International Monetary Fund (IMF) that provide oversight and support for countries' monetary policies.

Institutional Arrangements That Countries Adopt to Govern Exchange Rates Refers