Solved

Which of the Following Is NOT a Characteristic of a Target

Question 10

Multiple Choice

Which of the following is NOT a characteristic of a target zone regime?


A) The central bank will exchange currencies for gold or dollars on demand.
B) The central bank sells its currency if the daily market-determined exchange rate approaches the upper bound of the target.
C) The central bank buys its currency if the daily market-determined exchange rate approaches the lower bound of the target.
D) Many central banks do not have enough foreign currency reserves to withstand a speculative attack against their currency.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents