Which one is not a disadvantage of a freely floating exchange rate system?
A: It can adversely affect a country that has high unemployment.
B: It can adversely affect a country that has high inflation.
C: The government may intervene to change the value of a given currency.
D: The exchange rate risk is high and may be costly to manage.
A: It can adversely affect a country that has high unemployment.
B: It can adversely affect a country that has high inflation.
C: The government may intervene to change the value of a given currency.
D: The exchange rate risk is high and may be costly to manage.
举一反三
- For a country which has a relatively high rate of inflation and wants some form of pegged exchange rate, which of the following exchange rate regimes is the best choice? A: Fully fixed exchange rate B: Adjustable peg C: Crawling peg D: Fully convertible
- 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. （）
- 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.
- 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: 正确 B: 错误
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate