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When Norway Unilaterally Fixes Its Exchange Rate Against the Euro

Question 46

Multiple Choice

When Norway unilaterally fixes its exchange rate against the euro and leaves the krone

A) free to float against the non-euro currencies, it is able to keep at least some monetary independence.
B) free to float against the non-euro currencies, it is unable to keep at least some monetary independence.
C) free to float against the non-euro currencies, it is able to keep its monetary independence.
D) run by crawling peg against the non-euro currencies, it is able to keep at least some monetary independence.
E) fixed against the non-euro currencies, it is unable to keep its monetary independence.

Correct Answer: