Problems associated with the dual exchange rate system include:
A) the commercial rate may be set at such a low level to make the domestic currency overvalued, which will have an adverse effect on the economy
B) the system works properly only if the two foreign exchange markets are segmented
C) the system works properly only if the two foreign exchange rates are closely related
D) all of the given answers
Correct Answer:
Verified
Q4: If a fixed exchange rate is set
Q5: Which of the following is NOT a
Q6: Which of the following is NOT a
Q7: A 'Snake in the Tunnel' is:
A) the
Q8: A 'dirty float' is:
A) a managed float
B)
Q10: Some countries peg their currencies to a
Q11: According to the IMF classification of exchange
Q12: Under the gold standard the exchange rate
Q13: Which of the following was NOT an
Q14: The idea that the gold standard represented
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