The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?
Correct answer: C. Atlas method of exchange rate
- A. Breton Wood method
- B. Free market exchange rate
- C. Atlas method of exchange rate
- D. Open market exchange rate
Explanation
The World Bank’s Atlas method converts national income into a common dollar measure by using an exchange-rate average adjusted for inflation. The Bretton Woods system was an international monetary arrangement, not this World Bank method.
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