Which statement is true of a world with a system of fixed exchange rates as opposed to one with f...
Which statement is true of a world with a system of fixed exchange rates as opposed to one with floating rates?
Multiple Choice
It requires less world liquidity or reserves.
It creates less confidence about future values of currencies.
It facilitates the transmission of shifts in economic conditions between countries.
It increases the role of the central banks in foreign exchange markets.
Homework Answers
The correct answer is: d)
Reason: In case of fixed exchange system, the Central Bank needs to continuously intervene in the forex market to maintain the fixed exchange rate.
Thanks!
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Which statement is true of a world with a system of fixed exchange rates as opposed to one with f...
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(1) If the world price is above the domestic equilibrium price, the domestic country is likely...
(1)
If the world price is above the domestic equilibrium price, the
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The idea that exchange rates and prices adjust to equalize the
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If the foreign exchange marketi already reflected in today's exchange rates A) semistrong and weakform efficient C) semistrong-form efficient then all relevant public information to B) strong form officient D) weak-foam effident 12) Which of the following is not one of the major reasons for MNCS to forecast exchange rates? A) to determine whether to require the subsidiary to remit the funds or invest them focally B) to decide in which foreign market to invest the excess cash C) to...
Can anyone answer the question and explain thx alot
21) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) the Organization for Economic Cooperation and Development D) multilateral development banks 22) Which type of bond is denominated in one or more currencies but is traded in external markets outside the borders of the countries issuing the currencies? A) Eurobond B) domestic bond C) international bond D) foreign...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
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(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
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