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The Present Floating Exchange Rate System Was

Question 39

Multiple Choice

The present floating exchange rate system was


A) designed by the IMF and implemented flawlessly in 1973.
B) established by the major trading nations in 19721 after Nixon closed the gold window.
C) implemented in tandem with a reintroduction of the gold standard.
D) established after several trials in which central bankers set rates incorrectly and speculators corrected them in the markets, and formalized after the fact in the IMF's Jamaica Agreement.

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