Another name for flexible exchange rates is:
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A. B. C. D. E.C
Flexible exchange rates, also called floating exchange rates, are determined by market forces.
The correct answer is C. floating exchange rates.
Flexible exchange rates, also known as floating exchange rates, refer to a system where the value of a country's currency is determined by market forces such as supply and demand. Under this system, the exchange rate between two currencies can fluctuate freely based on various economic factors and market conditions.
Let's examine the other answer choices:
A. None of these answers: This option suggests that none of the provided answers are correct. However, since there is a correct answer among the choices, this option is incorrect.
B. All of these answers: This option implies that all the provided answers are correct. However, in reality, only one answer choice can be correct. Therefore, this option is incorrect.
D. Moveable exchange: This option refers to an exchange rate that can be moved or adjusted. While it shares some similarity with flexible exchange rates, it is not a commonly used term in the context of foreign exchange markets. Therefore, this option is not the best choice.
E. Freely determined exchange: This option describes the process of determining exchange rates based on market forces, similar to flexible or floating exchange rates. However, the commonly used term for this concept is "floating exchange rates." While "freely determined exchange" captures the essence of the concept, it is not the most commonly used terminology. Thus, this option is less accurate compared to option C.
In conclusion, the most appropriate and commonly used term for flexible exchange rates is C. floating exchange rates.