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
A: Fully fixed exchange rate
B: Adjustable peg
C: Crawling peg
D: Fully convertible
举一反三
- 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
- Forward exchange rate is an exchange rate set for the exchange of currencies at some future date
- Spot exchange rate is the exchange rate at which a foreign exchange dealer will convert one currency into another currency on _________________. A: some occasion B: a particular day C: a spot D: a period
- The AA schedule shows________. ( ) A: Exchange rate and output pairs at which only the foreign exchange market is in equilibrium. B: Interest rate and output pairs at which only the foreign exchange market is in equilibrium. C: Interest rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium. D: Exchange rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.
- 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.