The exchange rate system in which a country allows the value of the currency to be determined by the market forces of supply and demand is known as a
A) currency board.
B) floating exchange rate.
C) target zone.
D) pegged exchange rate system.
Answer: B
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U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic producers. Why does the United States continue to have these quotas?
A) to reduce competition for its domestic sugar industry B) to increase the cost of sugar C) to control the supply and demand for sugar D) to support a mass market for sugar E) to improve the promotion of sugar