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Chapter Eleven
The International MonetarySystem
 
11 - 3
 McGraw-Hill/Irwin International Business, 6/e© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Introduction
The international monetary system
 
refers to theinstitutional arrangements that govern exchangerates.Floating exchange rates occur when the foreignexchange market determines the relative value of acurrencyThe world’s four major currencies – dollar, euro,yen, and pound – are all free to float against eachother 
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