The reading argues that a primary reason
for exchange rate controls is that:
they increase the power of the
poor nations do not have the expertise to organize
only by controlling the exchange
market can a poor nation guarantee that foreign
exchange is used for economic development.
the industrial powers force the rest
of the world to use this system.
When a country allows private buyers and
sellers to determine the price of its currency in the
foreign exchange market, it has a system of:
an adjustable pegged rate.
fixed but convertible exchange
fixed but nonconvertible exchange
floating exchange rates.