Which of the following is an attribute of the "ideal" currency?
A. monetary independence
B. full financial integration
C. exchange rate stability
D. All are attributes of an ideal currency.
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The IMF exchange rate regime classification identifies ________ as the most rigidly fixed, and ________ as the least fixed.
A. exchange arrangements with no separate legal tender; independent floating
B. crawling pegs; managed float
C. currency board arrangements; independent floating
D. pegged exchange rates within horizontal bands; exchange rates within crawling pegs
The International Monetary Fund (IMF)
A. in recent years has provided large loans to Russia, South Korea, and Brazil.
B. was created as a result of the Bretton Woods Agreement.
C. aids countries with balance of payment and exchange rate problems.
D. is all of the above.
Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. Therefore, the exchange rate of pounds per dollar under this fixed exchange regime was
A. £4.8665/$.
B. £0.2055/$.
C. always changing because the price of gold was always changing.
D. unknown because there is not enough information to answer this question
China currently uses a ________ exchange rate regime.
A. crawling peg
B. pegged
C. managed floating
D. dollarization
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