An overvalued currency can be maintained:
A)indefinitely.
B)as long as the government is willing to defend the currency.
C)even in the face of prolonged speculative attacks.
D)only until international reserves are exhausted.

Question

Quizplus · Accepted Answer

An overvalued currency can only be maintained until international reserves are exhausted, and no nation has infinite international reserves.

An Overvalued Currency Can Be Maintained