With exchange rates, central banks make currencies perfect substitutes on the supply side of the market.
A) flexible
B) managed float
C) fixed
D) Both A and B
Correct Answer:
Verified
Q8: Perfect capital mobility
A) implies currency substitution.
B) is
Q9: If sterilization exists, then this implies that
A)
Q10: Sterilized intervention under flexible exchange rates is
Q11: The assumption of perfect substitutability among assets
Q12: The assumption of imperfect substitution between assets
Q14: When countries follow different policies, currency substitution
Q15: A high degree of currency substitution
A) breeds
Q16: refers to central banks offsetting international reserve
Q17: The main reason why "overshooting" occurs is
A)
Q18: Countries cannot become independent in terms of
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