Which of the following is not a feature of the current exchange rate system?
A)Some developing countries attempt to keep their currencies' exchange rates fixed against the US dollar or other major currencies.
B)Developed countries rely on the gold standard to fix their currencies' exchange rates.
C)Most Western European countries have adopted a single currency: the euro.
D)Australia allows the dollar to float against other major currencies, only intervening occasionally.

Question

Quizplus · Accepted Answer

Developed countries no longer rely on the gold standard to fix their currencies' exchange rates. The current exchange rate system is a system of floating exchange rates, where the value of a country's currency is determined by the market forces of supply and demand. The gold standard was a fixed exchange rate system where the value of a country's currency was tied to a specific amount of gold.

Which of the Following Is Not a Feature of the Current