Please Fill In The Blanks With The Best Answer.

Please fill in the blanks with the best answer.

1. 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. 2- The currencies in developed countries are typically (FLOATING/FIXED) against each other.

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

4. 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. 5- The Bretton Woods agreement had an Achilles' heel: the system could not work if its key currency, _____________was under speculative attack.

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

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

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

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

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