The united states currently uses a exchange rate

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Finite Mathematics and Applied Calculus
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Chapter 3 / Exercise 53
Finite Mathematics and Applied Calculus
Costenoble/Waner
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33) The United States currently uses a ________ exchange rate regime.A) crawling pegB) pegged C) floating D) fixed Answer: C
34) Based on the premise that, other things equal, countries would prefer a fixed exchange rate,which of the following statements is NOT true?A) Fixed rates provide
6 35) Which of the following is NOT an attribute of the "ideal" currency?A) Monetary
36) The authors discuss the concept of the "Impossible Trinity" or the inability to achievesimultaneously the goals of exchange rate stability, full financial integration, and monetaryindependence. If a country chooses to have a pure float exchange rate regime, which two of thethree goals is a country most able to achieve?A) Monetary
37) Beginning in 1991 Argentina conducted its monetary policy through a currency board. InJanuary 2002, Argentina abandoned the currency board and allowed its currency to float againstother currencies. The country took this step becauseA) the Argentine Peso had grown too strong against major trading powers thus the currency
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Finite Mathematics and Applied Calculus
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Chapter 3 / Exercise 53
Finite Mathematics and Applied Calculus
Costenoble/Waner
Expert Verified
board policies were hurting the domestic economy.B) the United States required the action as a prerequisite to finalizing a free trade zone with all of North, South, and Central America. C) the Argentine government lost the ability to maintain the pegged relationship as in factinvestors and traders perceived a lack of equality between the Argentine Peso and the U.S.dollar. D) all of the above Answer: C
38) In January 2002, the Argentine Peso changed in value from Peso1.00/$ to Peso1.40/$, thus,the Argentine Peso ________ against the U.S.

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