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.

Question

Quizplus · Accepted Answer

Currently, there is no standard or set of rules that all nations follow in terms of their exchange rate regimes and capital flows. Each nation chooses the system that they believe works best for their individual circumstances at the time. While some nations have floating exchange rates, others still peg currencies to other nations or use a fixed exchange rate system. Overall, the international payments system is characterized by diversity and a lack of uniformity.

Which Is the Best Characterization of the Current International Payments