Asked by
Joshua Hartwell
on Dec 02, 2024Verified
Under the fixed rate system, exchange rates were set by international treaty and administered by the International Monetary Fund.
Fixed Rate System
A regime where a country’s currency is tied to another currency or a basket of currencies at a set exchange rate.
International Treaty
A formal agreement between two or more countries that is recognized and governed by international law.
International Monetary Fund
A global organization created to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
- Acquire knowledge about the workings and effects of floating versus stationary exchange rate frameworks.
Verified Answer
LB
Learning Objectives
- Acquire knowledge about the workings and effects of floating versus stationary exchange rate frameworks.