If the central bank holds no foreign currency reserves, the nation's exchange rate is:
A) fixed.
B) pegged.
C) under the control of the IMF.
D) floating.

Name: If the central bank holds no foreign currency reserves, the nation's exchange rate is: A) fixed. B) pegged. C) under the control of the IMF. D) floating.
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Question

Quizplus · Accepted Answer

If the central bank holds no foreign currency reserves, the exchange rate is determined by market forces and is therefore floating.

If the Central Bank Holds No Foreign Currency Reserves, the Nation's