1. Fixed rates are currency values which are tied to a precious metal such as gold, or anchored to another currency, like the US Dollar. |
II. Under a fixed system, a currency can rise or fall due to changes in demand or supply of currencies on the foreign exchange market. |
III. Under this imports and exports can readjust to move the balance of payments back towards a desirable equilibrium. |
A) I & II
B) I & III
C) II & III
D) Only I
Correct Answer: D
Solution :
Fixed rates are currency values which are tied to a precious metal such as gold, or anchored to another currency, like the US Dollar. This method was brought by the International Monetary Fund (IMF).You need to login to perform this action.
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