Which of the following statements is true about the various exchange rate systems?
A) In a fixed exchange rate system,the value of a currency is adjusted according to the day to day market forces.
B) In a clean float,the central bank of a country will intervene in the foreign exchange market to try to maintain the value of its currency.
C) After the collapse of the Bretton Woods system of floating exchange rates in 1973,the world has operated with a fixed exchange rate system.
D) Under the Bretton Woods system,currency devaluations over 10 percent were allowed only with the approval of the IMF.
E) In dirty float,the exchange rate between a currency and other currencies is relatively fixed against a reference currency exchange rate.
Correct Answer:
Verified
Q22: In terms of the gold standard, the
Q28: The forward exchange market is an accurate
Q30: Which of the following is a great
Q33: Which of the following is a reason
Q34: Many of the world's developing nations peg
Q34: In the face of unpredictable exchange rate
Q35: In a floating exchange rate, the relative
Q36: The value of Surnum's,a developing economy,currency is
Q37: The International Monetary Fund can force countries
Q50: The 1944 Bretton Woods conference created two
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents