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nydimaria [60]
3 years ago
14

Which of the following are reasons managed floating exchange rates were adopted by the industrialized nations in 1973?

Business
1 answer:
Ymorist [56]3 years ago
6 0

Answer:

A) To avoid delays in adjustments of exchange rates caused by procedural difficulties and political biases.

C) To enable more prompt and continuous adjustments of exchange rates in response to evolving market forces.

Explanation:

  • <u>A managed floating exchange rate system allows the exchange rate to be allowed by a free market force of the supply and demand that consists of the some degrees of the government inventions</u>.
  • It was adopted in 1973 due to the overtime the float led to the market disordering and that caused a dramatic exchange rate fluctuations. Hence in order to control this, a system had to be made to keep at check on the change in rates.
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Shalnov [3]

Answer:

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In currency, it occurs when the national currency is sold massively and suddenly by national and foreign investors. These types of speculative attacks are seen especially on currencies that use a fixed exchange rate. They have the value of it tightened to a foreign currency.

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