In the long run,the least viable option for an exchange rate regime is probably
A) a single currency
B) a currency board
C) a target zone
D) dollarization
E) a pure float

Question

Quizplus · Accepted Answer

A target zone, which involves maintaining exchange rates within a specified range around a central value, can be difficult to sustain in the long run due to the need for constant intervention in the foreign exchange market to maintain the target range. This can lead to speculative attacks if the market believes the central value is not sustainable.

In the Long Run,the Least Viable Option for an Exchange