Description A system in which exchange rates are held constant A system in which exchange rates are determined by market forces, rather than government intervention A system in which exchange rates are allowed to fluctuate, but are subject to government intervention. A system in which the home currency is synchronized with the value of a particular foreign currency One advantage of a Fixed Exchange Rate Systems Managed Float Freely Floating O Pegged O O O exchange rate system is that the country with such a system is less affected by inflation in other countries.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Description
A system in which exchange rates are held constant
A system in which exchange rates are determined by market forces, rather than
government intervention
A system in which exchange rates are allowed to fluctuate, but are subject to
government intervention
A system in which t
foreign currency
One advantage of a
freely floating
fixed
cy is synchronized with the value of a particular
Fixed
Exchange Rate Systems
Managed
Float
Freely
Floating
Pegged
exchange rate system is that the country with such a system is less affected by inflation in other countries.
Transcribed Image Text:Description A system in which exchange rates are held constant A system in which exchange rates are determined by market forces, rather than government intervention A system in which exchange rates are allowed to fluctuate, but are subject to government intervention A system in which t foreign currency One advantage of a freely floating fixed cy is synchronized with the value of a particular Fixed Exchange Rate Systems Managed Float Freely Floating Pegged exchange rate system is that the country with such a system is less affected by inflation in other countries.
Description
A system in which exchange rates are held constant
A system in which exchange rates are determined by market forces, rather than
government intervention
A system in which exchange rates are allowed to fluctuate, but are subject to
government intervention
A system in which the home currency is synchronized with the value of a particular
foreign currency
One advantage of a
Fixed
Exchange Rate Systems
Managed
Float
Freely
Floating
Pegged
exchange rate system is that the country with such a system is less affected by inflation in other countries.
Transcribed Image Text:Description A system in which exchange rates are held constant A system in which exchange rates are determined by market forces, rather than government intervention A system in which exchange rates are allowed to fluctuate, but are subject to government intervention A system in which the home currency is synchronized with the value of a particular foreign currency One advantage of a Fixed Exchange Rate Systems Managed Float Freely Floating Pegged exchange rate system is that the country with such a system is less affected by inflation in other countries.
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