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    International Economics Study Set 9
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    Exam 20: Exchange Rate Crises: How Pegs Work and How They Break
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    If the Central Bank Holds No Foreign Currency Reserves, the Nation's
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If the Central Bank Holds No Foreign Currency Reserves, the Nation's

Question 121

Question 121

Multiple Choice

If the central bank holds no foreign currency reserves, the nation's exchange rate is:


A) fixed.
B) pegged.
C) under the control of the IMF.
D) floating.

Correct Answer:

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