The balance on the reserves account (BRA), under the pure flexible exchange regime is
A)-$44 billion.
B)$44 billion.
C)$216 billion.
D)none of the above

Question

Quizplus · Accepted Answer

Under a pure flexible exchange rate regime, the balance on the reserves account is typically zero because the central bank does not intervene in the foreign exchange market to maintain a specific exchange rate.

The Balance on the Reserves Account (BRA), Under the Pure