Under a floating exchange regime, the government and central bank never intervenes in the currency market.
举一反三
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.
- Which behaviors below will increase monetary aggregates ( ). A: The central bank purchases gold B: The central bank purchases foreign exchanges on foreign exchange market C: The central bank purchases government bonds D: Commercial banks sell foreign exchanges on foreign exchange market E: The central bank raises required reserve ratio
- When a country under a floating exchange rate regime has a deficit in the balance of payments, the government could change in foreign exchange reserves and money supply to affect economic indicators, and further improve its status of balance of payments disequilibrium. （）
- A fixed exchange rate regime means the currency price is set by the forex market based on supply and demand.
- Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the exchange rate of the domestic currency? A: Exchange controls B: Capital controls C: Official intervention D: Adjustable peg