A key international institution that plays an important role in exchange rate determination is the
A) U.S. Currency Board.
B) European Central Bank.
C) World Bank.
D) International Monetary Fund.

Question

Quizplus · Accepted Answer

The International Monetary Fund (IMF) plays a critical role in exchange rate determination by providing financial assistance to countries experiencing balance of payment difficulties, monitoring economic policies and exchange rate regimes, and promoting cooperation among member countries to maintain international monetary stability. The other options listed - the U.S. Currency Board, European Central Bank, and World Bank - also have important roles in global finance, but are not primarily focused on exchange rate determination.

A Key International Institution That Plays an Important Role in Exchange