Multiple Choice
Match the List to each of the descriptions.
-Free floating
A) Where a currency is allowed to float between an upper and lower exchange rate but is not allowed to moveoutside these limits
B) Where countries peg their exchange rate permanently to gold or to another currency
C) Where exchange rates are fixed for a period of time, but may be devalued or revalued) if a deficit orsurplus) becomes substantial
D) Where a group of currencies are pegged to each other but collectively are free to fluctuate against othercurrencies
E) Where governments do not intervene at all in foreign exchange markets
F) Where the government allows a gradual adjustment of the exchange rate by small amounts
G) Where the government intervenes in the foreign exchange market to prevent excessive exchange ratefluctuations
Correct Answer:

Verified
Correct Answer:
Verified
Q9: If an exchange rate falls but is
Q10: Which of the following measures is suitable
Q11: Assume that there is a balance of
Q12: The Bretton Woods system was abandoned in
Q13: The current account includes the receipt of
Q15: Under a system of floating exchange rates,
Q16: Which of the following is not a
Q17: An economy that trades and has financial
Q18: When the exchange rate falls this is
Q19: Match the List to each of the