The difference between a free floating exchange rate and a managed floating exchange rate is
A: under managed float government intervention plays a role in determining the exchange rate.
B: free floating exchange rates can only appreciate or depreciate by 5 units per day.
C: the equilibrium exchange rate is always higher for managed float rates.
D: all of the above
A: under managed float government intervention plays a role in determining the exchange rate.
B: free floating exchange rates can only appreciate or depreciate by 5 units per day.
C: the equilibrium exchange rate is always higher for managed float rates.
D: all of the above
举一反三
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.
- The exchange rate set for an immediate trade is often referred to as<br/>a __. A: managed exchange rate. B: pegged exchange rate. C: forward exchange rate. D: spot exchange rate.
- Under floating exchange rates, short-run exchange rates are primarily determined by national differences in real interest rates and shifting expectations of future exchange rates.
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- The People's Bank of China has A: allowed a flexible exchange rate to boost exports. B: managed its exchange rate to help control inflation. C: strictly followed a fixed exchange rate to boost exports. D: purchased U.S. dollars to appreciate the yuan.