A graph of the target zone exchange regime would include an upper bound, a lower bound, and a market-determined exchange rate.

Question

Quizplus · Accepted Answer

In a target zone exchange regime, the currency's exchange rate is allowed to fluctuate within a specified range, defined by an upper and lower bound, while the market-determined exchange rate moves within these bounds based on supply and demand conditions.

A Graph of the Target Zone Exchange Regime Would Include