With a(n) _____, the government allows the market to determine the exchange rate of a currency.
A. adjustable peg
B. dirty float
C. crawling peg
D. clean float
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Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the exchange rate of the domestic currency?
A. Exchange controls
B. Capital controls
C. Official intervention
D. Adjustable peg
Which of the following terms describes an exchange rate regime in which the government intervenes in the foreign exchange market in order to influence the market determined exchange rate?
A. Fully convertible
B. Currency control
C. Managed float
D. Clean float
Which of the following statements is true?
A. The special drawing right (SDR) is a basket of currencies made up of U.dollars, euros, British pounds, and Japanese yen.
B. Today, only China and Switzerland have currencies fixed to gold.
Currencies whose prices are fixed to the same commodity would ensure that arbitrage will not work and exchange rates will be floating.
D. A country maintains a floating exchange rate value to weaken the international value of its currency.
Which of the following terms is used to describe an exchange rate regime in which the rate is fixed to a currency or basket of currencies?
A. Exchange controls
B. Pegged exchange rate
C. Managed float
D. Fully convertible