Asked by Luisa Fernanda Bohorquez on Jul 06, 2024
Verified
The current monetary system for conducting international trade is usually described as a system of
A) fixed exchange rates.
B) freely floating exchange rates.
C) a managed gold standard.
D) managed floating exchange rates.
International Trade
The exchange of goods, services, and capital across international borders or territories.
Monetary System
The set of mechanisms and institutions that provide a country with its currency and manage its supply and value.
- Comprehend the fundamentals of exchange rates and their categorization into flexible, fixed, and managed floating types.
Verified Answer
KA
Kelli AskinsJul 11, 2024
Final Answer :
D
Explanation :
The current monetary system for conducting international trade is best described as a system of managed floating exchange rates, where exchange rates are determined by market forces but are subject to intervention by central banks to stabilize or influence their currency's value.
Learning Objectives
- Comprehend the fundamentals of exchange rates and their categorization into flexible, fixed, and managed floating types.