Under a flexible exchange rate system,there is no need for foreign exchange reserves.
There is no need to use foreign exchange reserves to maintain the exchange rate because the market is performing this function.
Correct Answer:
Verified
Q124: Use a model of the dollar-euro foreign
Q125: Explain what economists mean when they say
Q133: Explain the forces that can cause an
Q138: Under a fixed exchange rate regime,what will
Q141: How can trade policy,fiscal policy,and monetary policy
Q142: State the case for and the case
Q143: In a floating exchange rate system,the capital
Q144: The inflow of foreign investment into the
Q148: Industrial countries are not usually involved in
Q151: If there are no reserves,domestic adjustments to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents