An exchange rate regime is:
A) the prevailing set of domestic prices.
B) a ranking of foreign currencies purchasing power parity.
C) a policy rule for intervention in the foreign exchange market.
D) the international structure of interest rates.

Question

Quizplus · Accepted Answer

An exchange rate regime is essentially a policy rule for how a country manages its currency in relation to other currencies, including decisions on intervention in the foreign exchange market to influence the currency's value.

An Exchange Rate Regime Is