What best describes what makes a cooperative fixed exchange rate system work?
A) There are too many cooks in the kitchen.
B) Take all you can get.
C) You scratch my back, I'll scratch yours.
D) Curiosity killed the cat.

Question

Quizplus · Accepted Answer

A cooperative fixed exchange rate system works when countries work together and cooperate to maintain the fixed exchange rates. This cooperation often involves agreements to intervene in currency markets to buy or sell currencies in order to maintain the fixed rates. This can be seen as "you scratch my back, I'll scratch yours" or a mutual agreement to support each other's currencies.

What Best Describes What Makes a Cooperative Fixed Exchange Rate