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Match the List to Each of the Descriptions

Question 14

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

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