Multiple Choice
For a country with a fixed exchange rate,foreign exchange reserves are
A) an asset of the domestic government.
B) a liability of the domestic government.
C) held by private banks.
D) are unnecessary.
E) dictated by the trade balance.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q15: In an open economy,the law of one
Q16: Adoption of a currency board<br>A) is one
Q17: Under a flexible exchange rate,an increase in
Q18: The adoption of capital controls makes<br>A) everyone
Q19: An agreement among countries to adopt a
Q21: The nominal exchange rate is the<br>A) domestic
Q22: In the monetary small open-economy model with
Q23: In the monetary small open-economy model with
Q24: Determine the impact of an increase in
Q25: If a country's central bank seeks to