3. The international monetary system Until August 1971, industrialized countries around the world maintained a fixed exchange rate of their currencies with the U.S. dollar, which was linked to gold. The gold standardized system was called the Bretton Woods Fixed Exchange Rate System. This system collapsed in 1971, and since then, the dollar has not been linked to gold.

Based on your understanding of the international monetary system, complete the following statements:

A forward or spot ? exchange rate is the quoted price for a unit of foreign currency to be delivered within a very short period of time.

The government does not set a pegged or flowing ? exchange rate, which means that supply and demand in the market determine the currencys value.

When American customers import more from Europe than they export to Europe, the euro appreciates or depreciates ? relative to the dollar.

The (devaluation/revaluation) or (depreceiation/ appreciation)? of a currency refers to a decrease or increase, respectively, in the foreign exchange value of a floating currency.

Under a managed or freely? floating regime, the government plays a significant role in managing the exchange rate by manipulating the currencys supply and demand.

Currencies under such a regime are nonconvertible or convertible? currencies.