The current exchange rate system has which of the following characteristics?
A) The countries of the European Union have adopted the gold standard.
B) Several developing countries in Asia have adopted the Bretton Woods system.
C) The United States allows the dollar to float against other major currencies.
D) The current global foreign exchange system is a fixed system.
E) All developing countries allow their currencies to float against the dollar and other major currencies.
C
You might also like to view...
Why did India's economic growth rate lag far behind growth rates in South Korea, Japan, and Taiwan between 1960 and 1999?
A) Indian households saved too much and spent too little. B) Indian government officials opened the nation up to free international trade. C) India engaged in central economic planning. D) India has too small of a population to generate a highly specialized division of labor.
For a country with a fixed exchange rate, foreign exchange reserves are
A) an asset of the domestic government. B) a liability of the domestic government. C) held by private banks. D) are unnecessary.
When a country allows trade and becomes an importer of steel,
a. the losses of the domestic producers of steel exceed the gains of the domestic consumers of steel. b. the losses of the domestic consumers of steel exceed the gains of the domestic producers of steel. c. the gains of the domestic producers of steel exceed the losses of the domestic consumers of steel. d. the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel.
If a reform of the tax laws encourages greater saving, the result would be
a. higher interest rates and greater investment. b. higher interest rates and less investment. c. lower interest rates and greater investment. d. lower interest rate and less investment.