Answer Happy

Label each statement as either true or false. A country that allows demand and supply to be the sole determinant of the value of its currency has a managed exchange rate. Answer Bank Under the gold standard, a country is generally unable to rapidly expand its money supply during an economic depression. Two examples of a managed exchange rate are the gold standard and the Bretton Woods system. A system in which two countries agree to keep the exchange rate between their currencies constant over long periods is called a fixed exchange rate system. true false Today, modern economies no longer back their currencies with gold