on Exercises i Saved Help Save & Exit Understanding Exchange Rates International businesses with markets and production facilities in other countries, or that use materials from different countries need understand the ways and rates at which currency is converted. Countries may operate using different exchange rate regimes, all of which have different advantages and disadvantages. Governments around the world pursue a number of different exchange rate policies. No one exchange rate system is universal, and the international monetary system is continually emerging. One key factor an international business must consider when looking at foreign markets is how the currency will be converted into the home-country currency. Drag each description to the correct currency arrangement. Uncertainty Hold foreign reserves of a s currency in an amount equal to its domestic currency supply Government intervention to achieve particular goals and targets Rely on market Fluctuation within a band of less than 1% Exchange the two at a fixed rate Floating Exchange Rate Managed Float Pegged Exchange Rate Currency Board