The reading argues that a primary reason for exchange rate controls is that:

they increase the power of the government.
poor nations do not have the expertise to organize markets.
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 rates.
fixed but nonconvertible exchange rates.
floating exchange rates.

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