HomeworkLib
Question

32 A country that has an exchange rate system under which its exchange rate is allowed...

32 A country that has an exchange rate system under which its exchange rate is allowed to fluctuate against other currencies within a target zone is using a(n) ________ system.

Multiple Choice

  • fixed peg

  • adjustable peg

  • free float

  • pure float

  • capital float

business   Operations-Management   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1. B. Adjustable peg

When we look at the above paragraph, we can say that the adjustable peg system allows the currency to fluctuate within constraints and the target zone.

For any queries, just leave a comment before downvoting and I will try to help. Rate the answer with an upvote if you found it helpful.

0 0
Add a comment
Know the answer?
Add Answer to:
32 A country that has an exchange rate system under which its exchange rate is allowed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Fixed exchange rates and foreign macroeconomic policy Consider a fixed exchange rate system, in which a...

    Fixed exchange rates and foreign macroeconomic policy Consider a fixed exchange rate system, in which a group of countries (called follower countries) peg their currencies to the currency of one country (called the leader country). Because the currency of the leader country is not fixed against the currencies of countries outside the fixed exchange rate system, the leader country can conduct monetary policy as it wishes. For this problem, consider the domestic country to be a follower country and the...

  • Under the pure flexible exchange rate system, 1. Is it possible for a country to have...

    Under the pure flexible exchange rate system, 1. Is it possible for a country to have positive balances for both of its current account and capital account at the same time? If so, is the situation sustainable or not? Explain. 2. Is it possible for a country to have negative balances for both of its current account and capital account at the same time? If so, is the situation sustainable or not? Explain.

  • Under the fixed exchange rate system, 1. Is it possible for a country to have positive...

    Under the fixed exchange rate system, 1. Is it possible for a country to have positive balances for both of its current account and capital account at the same time? If so, is the situation sustainable or not? Explain. 2. Is it possible for a country to have negative balances for both of its current account and capital account at the same time? If so, is the situation sustainable or not? Explain.

  • Can someone explain the differences between managed float, crawling peg, and de facto peg please? 1....

    Can someone explain the differences between managed float, crawling peg, and de facto peg please? 1. 1994-2005: From a Peg Within a Small Band To a De Facto Peg China began modifying its exchange regime in earnest in 1986, when the government introduced a dual- exchange rate regime under which exporters sold their earnings in a regulated market separate from the inner China market (and thus allowing those exporters to receive more RMB for a unit of foreign exchange than...

  • If the United States decided to fix its exchange rate with Japan, this would Multiple Choice...

    If the United States decided to fix its exchange rate with Japan, this would Multiple Choice require the U.S. to fix its exchange rate with all other currencies. ensure that the U.S. dollar would always appreciate against the yen. prevent the U.S. from having a trade deficit with Japan. cause the U.S. government to become the dollar-yen foreign exchange market.

  • 1. Why do you think that the Chinese historically pegged the value of the yuan to...

    1. Why do you think that the Chinese historically pegged the value of the yuan to the U.S. dollar? 2. Why did the Chinese move to a managed-float system in 2005? 3. What are the benefits that China might gain by allowing the yuan to float freely against other major currencies such as the U.S. dollar and the euro? What are the risks? What do you think they should do? 4. Is there any evidence that the Chinese kept the...

  • Under the Bretton-Woods system, if the market exchange rate E* is above the upper band of...

    Under the Bretton-Woods system, if the market exchange rate E* is above the upper band of (par value +1%) against the $, what happens? (Notice: E* is to be intended as the price of foreign currency - for example, in the UK the market exchange rate with the US Dollar is 1$=BP E*) 4 Points A.) No intervention by the Central Bank is needed B.) The country is increasing its reserves of $ and can invest $ in T-Bills, or...

  • If a country has a fixed exchange rate then the: Multiple Choice capital account surplus or...

    If a country has a fixed exchange rate then the: Multiple Choice capital account surplus or deficit must be matched by a deficit or surplus in the official reserve account. current account surplus or deficit must be matched by a deficit or surplus in the official reserves account. official settlements balance will be equal in size, but opposite in sign, to the change in the official reserves. current and capital account balances will be equal in size, but opposite in...

  • 13. Once a country decides to allow a free flow of capital has to a) Fixed...

    13. Once a country decides to allow a free flow of capital has to a) Fixed exchange rate regime b) Independent monetary policy c) Independent monetary policy or fixed exchange rate regime d) Fixed exchange rate regime and independent monetary policy 14. The Japanese economy experienced a deep recession in the 1990s. The central bank of decreased interest rates to zero to tackle economic slowdown but it was not enough to get the country out of the recession. The government...

  • Briefly describe the current International Monetary System. How does the Current systems differ from the system...

    Briefly describe the current International Monetary System. How does the Current systems differ from the system that was in place prior to August 1971? Prior to 1971, the world operated on a fixed exchange rate system. The value of the U. S. Dollar link to gold at the fixed price of $35 per ounce and the values of other currencies then tied to the dollar. For example, in 1964, the British pound was fixed at $2.80 for 1 pound, with...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT