An example of a 'fixed exchange rate system' is:
A)a floating currency exchange rate system.
B)the gold standard.
C)a managed float exchange rate system.
D)an exchange rate system where currencies are determined by the market.

Question

Quizplus · Accepted Answer

The gold standard is an example of a fixed exchange rate system. Under the gold standard, the value of a country's currency was fixed to a specific amount of gold. This meant that the exchange rate between countries was also fixed, as the value of their currencies was based on a common commodity. Other examples of fixed exchange rate systems include currency boards and pegged exchange rate systems.

An Example of a 'Fixed Exchange Rate System' Is