Which exchange rate system does not require monetary reserves for off – McqOptions

MCQOPTIONS

1.	Which exchange rate system does not require monetary reserves for official exchange rate intervention ?
A.	floating exchange rates
B.	pegged exchanged rates
C.	managed floating exchange rates
D.	dual exchange rates
Answer» B. pegged exchanged rates

Discussion

No Comment Found

Related MCQs

Small nations whose trade and financial relationships are mainly with a single partner tend to utilize ?
Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?
Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?
Which exchange rate mechanism in intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions ?
Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?
Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?
Which exchange rate system does not require monetary reserves for official exchange rate intervention ?
Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
Small nations with more than one major trading partner tend to peg the value of their currencies to ?
The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?