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Unformatted text preview: instruments. The foreign exchange market is used fo r (1) currency conversion, (2) currency hedging, (3) currency arbitrage, and (4) currency speculation. The gold standard was a monetary system that pegged currencies to gold and guaranteed convertibility to gold. The Bretton Woods system of fixed exchange rates was established in 1944. Toda y, the international monetary system remains in large part a managed-float system whereby most nations currencies float against one another with government intervention to realign exchange rates when necessary....
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- Fall '07