For a country,a fully floating currency regime:

Question

Quizplus · Accepted Answer

A fully floating currency regime allows the currency to freely move based on market forces, which means that the central bank does not need to intervene to maintain a particular fixed value of the currency in the foreign exchange (FX) markets. This also means that the government can remove most restrictions on investment flows since there is no need to control capital movements in and out of the country. Additionally, a floating currency regime does not require a country to maintain large amounts of FX reserves to support the currency since the exchange rate is determined by supply and demand in the market. Therefore, all of the given answers are correct.

For a Country,a Fully Floating Currency Regime