Asked by Ishara Ranathunga on Jul 27, 2024
Verified
Fixed exchange rates are often maintained by using all of the following tools except
A) open speculation by individual traders in foreign currency markets.
B) international monetary reserves held by central banks.
C) controls on imports and exports, such as tariffs and quotas.
D) domestic macroeconomic adjustments using monetary and fiscal policies.
Fixed Exchange Rates
A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold, minimizing fluctuations in exchange rates.
International Monetary Reserves
International monetary reserves are assets held by central banks or monetary authorities in various forms, such as foreign currencies, gold, and Special Drawing Rights (SDRs), used to back the currency and support economic policies.
Domestic Macroeconomic Adjustments
Changes made within a country's economy to address macroeconomic issues such as inflation, unemployment, and economic growth.
- Pinpoint the resources and regulations utilized to maintain stable exchange pricing mechanisms.
Verified Answer
Learning Objectives
- Pinpoint the resources and regulations utilized to maintain stable exchange pricing mechanisms.
Related questions
To Maintain a Fixed Exchange Rate Under a Shortage of ...
To Maintain a Fixed Exchange Rate, the Government Can Use ...
Suppose That the Mexican Government Decides to Fix or Peg ...
The Current Monetary System for Conducting International Trade Is Usually ...
Which of the Following Statements Is Not True in the ...