In Saying That the Present System of Flexible Exchange Rates

Multiple Choice

In saying that the present system of flexible exchange rates is managed we mean that:

A) countries which allow their exchange rate to move freely will lose their borrowing privileges with the IMF.
B) the value of any IMF member's currency can only vary 2 percent from its par value.
C) IMF officials determine exchange rates on a day-to-day basis.
D) the central banks of various countries buy and sell foreign exchange to smooth out short-term fluctuations or undesirable trends in exchange rates.