Multiple Choice
If neither changes in interest rates nor central bank intervention from the reserves can halt a depreciation/appreciation of a currency that is perceived to be not at its equilibrium exchange rate, then which of the following exchange rate regimes are viable over the longer term?
A) Free floating exchange rate
B) Fixed with an independent monetary policy
C) Adjustable peg system (with just occasional adjustments)
D) Adopting the dollar or the euro or some other international currency as the domestic currency
E) A and D
F) A, B and D
G) B and C
Correct Answer:
Verified
Correct Answer:
Verified
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