Which of the following statements is not true in the current exchange-rate system?
A)Major currencies like the U.S. dollar, euro, pound, and yen operate mostly in a flexible system responding to supply and demand forces.
B)Some developing nations peg their currencies to the dollar and allow their currencies to fluctuate with it relative to other currencies.
C)Each country uses its own unique currency; for example, only the U.S. uses the U.S. dollar as its currency.
D)Many nations peg their currencies to a "basket," or group, of other currencies, rather than to a single other currency.

Question

Quizplus · Accepted Answer

Explanation: Statement C is not true because there are territories and countries other than the U.S. that use the U.S. dollar as their official or de facto currency. Examples include Ecuador, El Salvador, and Panama. The other statements accurately describe aspects of the current exchange-rate system.

Which of the Following Statements Is Not True in the Current