Which of the following defines a soft peg?
A) An exchange rate determined by the market
B) An exchange rate that fluctuates within a set band
C) An exchange rate that is not allowed to vary
D) An exchange rate that is backed by gold
Correct Answer:
Verified
Q74: Under a pure gold standard,
A)exchange rates float
Q75: The biggest disadvantage of a fixed exchange
Q76: The Smithsonian Agreement of 1971 was hailed
Q77: If a currency has a fixed exchange
Q78: A reason why fixed exchange rate systems
Q80: Which of the following is not a
Q81: Exchange rate pegs are popular with developing
Q82: What are the disadvantages of adopting a
Q83: When most shocks to the economy are
Q84: Which type of exchange rate system minimizes
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