CFA 18.2
7 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

With respect to exchange rate regimes, crawling bands are most likely used in a transition toward:

  • floating exchange rates. (correct)
  • a fixed peg arrangement.
  • a monetary union.
  • Akor is a country that has chosen to use a conventional fixed peg arrangement as the country's exchange rate regime. Under this arrangement, Akor's exchange rate against the currency to which it pegs:

  • will be equal to the peg rate.
  • may fluctuate around the peg rate. (correct)
  • is market-determined.
  • A country's central bank announces a monetary policy goal of a stable exchange rate with the euro, which it defines as deviations of no more than 3% from its current exchange rate of 2.5000. The country's exchange rate regime is best described as a:

  • crawling band.
  • fixed peg.
  • target zone. (correct)
  • Which of the following is least likely a common objective of governmental capital restrictions?

    <p>Keep domestic interest rates high.</p> Signup and view all the answers

    A government that imposes restrictions on capital flows into or out of its country is most likely attempting to:

    <p>reduce the volatility of domestic asset prices.</p> Signup and view all the answers

    A government that wishes to reduce the volatility of domestic asset prices and protect domestic industries is most likely to:

    <p>impose capital restrictions.</p> Signup and view all the answers

    In which of the following exchange rate regimes can a country participate without giving up its own currency?

    <p>Target zone or conventional fixed peg.</p> Signup and view all the answers

    More Like This

    CFA 12.1
    10 questions

    CFA 12.1

    PleasantXylophone4430 avatar
    PleasantXylophone4430
    CFA 12.2
    36 questions

    CFA 12.2

    PleasantXylophone4430 avatar
    PleasantXylophone4430
    CFA 18.1
    16 questions

    CFA 18.1

    PleasantXylophone4430 avatar
    PleasantXylophone4430
    Use Quizgecko on...
    Browser
    Browser