Multiple Choice
Match the List to each of the descriptions.
-Totally fixed
A) Where a currency is allowed to float between an upper and lower exchange rate but is not allowed to moveoutside these limits
B) Where countries peg their exchange rate permanently to gold or to another currency
C) Where exchange rates are fixed for a period of time, but may be devalued or revalued) if a deficit orsurplus) becomes substantial
D) Where a group of currencies are pegged to each other but collectively are free to fluctuate against othercurrencies
E) Where governments do not intervene at all in foreign exchange markets
F) Where the government allows a gradual adjustment of the exchange rate by small amounts
G) Where the government intervenes in the foreign exchange market to prevent excessive exchange ratefluctuations
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Match the List to each of the
Q15: Under a system of floating exchange rates,
Q16: Which of the following is not a
Q17: An economy that trades and has financial
Q18: When the exchange rate falls this is
Q20: Under a floating exchange rate, contractionary monetary
Q21: Match the List to each of the
Q22: When foreign assets in the UK increase
Q23: If there is a current account deficit
Q24: One advantage of a fixed exchange rate