An exchange rate arrangement with a free market determined floating exchange rate for capital account transactions and a fixed exchange rate for current account transactions is called
A) capital-current account exchange rate system.
B) dual exchange rate system.
C) managed exchange rate system.
D) crawling peg exchange rate system.
B
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Everything else equal, a decrease in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
Which of the following was produced by a combination of automatic stabilizers and discretionary fiscal policy?
a. the Great Depression b. the Great Recession c. the large budget deficit of 2009 d. the budget surplus in the 1990s