A key element of the Jamaica Agreement from 1976 is
A) fixed exchange rates were declared unacceptable to the IMF members
B) pegged exchange rates were declared unacceptable to the IMF members
C) flexible exchange rates were declared acceptable to the IMF members
D) mixed exchange rates were declared acceptable to the IMF members

Question

Quizplus · Accepted Answer

The Jamaica Agreement from 1976 declared flexible exchange rates as acceptable to the IMF members, replacing the previous fixed exchange rate system. Therefore, option C is the correct choice. Option A is incorrect as fixed exchange rates were declared unacceptable, and option B is incorrect as pegged exchange rates were not explicitly mentioned in the agreement. Option D is also incorrect as no reference was made to mixed exchange rates in the Jamaica Agreement.

A Key Element of the Jamaica Agreement from 1976 Is