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Quiz10 - Quiz#10 David Chuah Started 8:16 PM Questions 10 1...

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Quiz #10 David Chuah Started: April 18, 2010 8:16 PM Questions: 10 1. Quiz #10_Q1 (Points: 10) A devaluation is when a country: a. allows its currency’s value to float. b. raises the fixed value of its currency. c. lowers the fixed value of its currency. d. allows its currency value to be set by the market. Save Answer 2. Quiz #10_Q2 (Points: 10) *****Which one of the following is the main disadvantage of the fixed exchange rate regime? a. Low inflation b. Increase in trade and investment c. No use of monetary policy d. Avoids speculative bubbles e. Reduces risk premium Save Answer 3. Quiz #10_Q3 (Points: 10) An exchange rate system such as Nicaragua’s where the currency value is maintained against another currency, but the parity value is allowed to change at regular intervals is called a a. conventional peg. b. peg with bands. c. managed float. d. crawling peg.
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e. parity band. Save Answer 4. Quiz #10_Q4 (Points: 10) Which of the following is not valid statement regarding Fixed Exchange Rate Regimes? a. A country can achieve fixing the exchange rate whether by capital controls or conducting
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Quiz10 - Quiz#10 David Chuah Started 8:16 PM Questions 10 1...

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