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The Current International Financial System Is a Managed Float Exchange

Question 56

Multiple Choice

The current international financial system is a managed float exchange rate system because


A) exchange rates fluctuate in response to,but are not determined solely by,market forces.
B) some countries keep their currencies pegged to the dollar,which is not allowed to fluctuate.
C) all countries allow their exchange rates to fluctuate in response to market forces.
D) all countries peg their currencies to the dollar which is allowed to fluctuate in response to market forces.

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