All of the following are true concerning the flexible exchange rate system except one. Which is the exception?
a. It is the same as a floating exchange rate system.
b. It is a system in which supply and demand determine the exchange rate.
c. Government officials have little direct role in the foreign exchange market.
d. Exchange rates may fluctuate considerably from time to time.
e. Exchange rates are fixed by the central banks of the various countries.
E
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Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of: a. money management
b. entrepreneurship. c. strategic management. d. capital management.
In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that
a. poaching can be reduced with price supports for ivory. b. the supply of ivory has fallen, leading to an increase in price and reward for poaching. c. burning ivory decreases demand, leading to lower prices and reward for poaching. d. the demand for ivory is higher, leading to an increase in price and reward for poaching. e. burning ivory raises demand, and controlled prices will lead to even greater poaching.