Question
Which of the following statements regarding the gold-exchange standard are true? A. A country on the gold-exchange standard holds very little of its reserves in
Which of the following statements regarding the gold-exchange standard are true?
A. A country on the gold-exchange standard holds very little of its reserves in the form of currency of a country.
B. Advocates in favor argue that the system economizes on gold because countries cannot use gold in foreign exchanges as an international means of payment.
C. A country on the gold-exchange standard holds most of its reserves in the form of currency of a country and advocates in favor argue that the system economizes on gold because countries can use gold in foreign exchanges as an international means of payment are correct.
D. none of the options are true
A floating exchange rate is:
A. involves the confirmation of the country authorities de jure exchange rate arrangement.
B. when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.
C. where the exchange rate remains within a narrow margin of 2 percent relative to a statistically identified trend for six months or more, and the exchange rate arrangement cannot be considered as floating.
D. where the exchange rate is largely market determined without an ascertainable or predictable path for the rate.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started