International businesses with markets and production facilities in other countries, or that use materials from different countries need to understand the ways and rates at which currency is converted. Countries may operate using different exchange rate regimes, all of which have different advantages and disadvantages. Governments around the world pursue a number of different exchange rate policies. No one exchange rate system is universal, and the international monetary system is continually emerging. One key factor an international business must consider when looking at foreign markets is how the currency will be converted into the home-country currency.

Match the following description to the current currency arrangments.

Description:
Reduces uncertainty
uncertainty
Fluctuation with limits
Limited options
Difficult
NO uncertainty
Unknown elements
Government adjusts
Market-based
Continual government
intervention

Currency:
Floating Exchange Rate
Managed Float
Pegged exchange rate
Currency Board