Please fill in the blanks with the best answer.

1. A _____________ is a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the law of supply and demand.

2. The currencies in developed countries are typically (FLOATING/FIXED) against each other.

3. Many of the world's (DEVELOPING/DEVELOPED) countries peg their currencies.

4. In a country with a dirty float exchange rate regime, the central bank would (REDUCE/INCREASE) its foreign currency reserves when the currency is too depreciated.

5. The Bretton Woods agreement had an Achilles' heel: the system could not work if its key currency, _____________was under speculative attack.

6. The exchange rate regime is (FLOATING/FIXED) under Bretton Woods system.

7. International businesses would prefer (FLOATING/FIXED) exchange rate system.

8. The current international monetary system can be described as (FLOATING/FIXED/MIXED) exchange rate regimes.

9. _____________and _____________are the two main elements of the case for floating exchange rates.

10. _____________are seen as a mechanism for controlling inflation and imposing economic discipline on countries.