Q. Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?
✅ Correct Answer: (C)
crawling peg
International Economics MCQs and Notes
Q. At negative nominal interest rates, which one of the following statements is the most accurate?
✅ Correct Answer: (People wou)
Q. The main reason(s) why governments sometimes chose to devalue their currencies is (are):
✅ Correct Answer: (D)
All of the above.
Q. Under fixed exchange rate, which one of the following statements is the most accurate?
✅ Correct Answer: (C)
Devaluation causes an expansion of the money supply.
Q. Under fixed exchange rate, which one of the following statements is the most accurate?
✅ Correct Answer: (A)
Devaluation causes a rise in output.
Q. Under fixed exchange rate, which one of the following statements is the most accurate?
✅ Correct Answer: (B)
Devaluation causes a rise in output, a rise in official reserves, and an expansion of the money supply.
Q. Which one of the following statements is the most accurate?
✅ Correct Answer: (B)
Revaluation reflects a deliberate government decision, and appreciation is an outcome of government actions and market forces acting together.
Q. Which one of the following statements is the most accurate?
✅ Correct Answer: (C)
Devaluation reflects a deliberate government decision, and depreciation is an outcome of government actions and market forces acting together.
Q. Which one of the following statements is the most accurate?
✅ Correct Answer: (B)
Appreciation is a fall in e when the exchange rate floats, and revaluation is a fall in e when the exchange rate is fixed.
Q. Which one of the following statements is the most accurate?
✅ Correct Answer: (Depreciati)