Question 48
MediumOriginal questionMatch each system with its description.
| List I | List II |
|---|---|
| A. Flexible exchange rate | I. Each currency's value tied to a fixed amount of gold |
| B. Fixed exchange rate | II. Market-set with central bank intervention |
| C. Managed floating | III. Set and held by the government |
| D. Gold standard | IV. Set only by market demand and supply |
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Floating is market only; fixed is government only; managed floating mixes the two; the gold standard tied currencies to gold.
- Concept
- Exchange rate systems
- Typical timeTypical
- 90 s
- Your timeYours
- —
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