Question
1) Members of the International Monetary Fund may settle transactions among themselves by transferring Special Drawing Rights (SDRs). a. True b. False c. Unsure 2)
1) Members of the International Monetary Fund may settle transactions among themselves by transferring Special Drawing Rights (SDRs). a. True b. False c. Unsure 2) A small economy country whose GDP is heavily dependent on trade with the U.S. could use a(an) _________ exchange rate regime to minimize the risk to their economy that could arise due to unfavorable changes in the exchange rate. a. pegged exchange rate with the U.S. b. pegged exchange rate with the Euro c. independent floating d. managed float e. none of the above 3) The U.S currently has a ________ exchange rate regime. a. managed floating b. pegged c. free floating d. fixed e. none of the above
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