Under which system does a nation not concern itself with external balance?
A)flexible exchange rate system
B)fixed exchange rate system
C)managed peg
D)gold standard

Question

Quizplus · Accepted Answer

In a flexible exchange rate system, the value of a nation's currency is allowed to fluctuate according to the foreign exchange market. Therefore, the country does not need to intervene to maintain its currency value for the sake of external balance, as the market forces of supply and demand automatically adjust the exchange rate to balance external transactions.

Under Which System Does a Nation Not Concern Itself with External