An exchange rate arrangement with a free market determined floating exchange rate for capital account transactions and a fixed exchange rate for current account transactions is called
A) capital-current account exchange rate system.
B) dual exchange rate system.
C) managed exchange rate system.
D) crawling peg exchange rate system.
B
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Overuse of a common resource may be avoided by all of the following methods of government intervention except
A) restricting access to the resource. B) restricting the intensity of the use of the resource. C) issuing tradeable permits for the use of the common resource. D) government taking over ownership of all common resources.
When an outcome is ________, social surplus is ________
A) Pareto inefficient; maximized B) Pareto efficient; maximized C) Pareto efficient; minimized D) Pareto inefficient; minimized
All of the following are economic explanations for why shopping carts have gotten bigger over the years.
a. more women in the marketplace have made spending time in the grocery store more costly. b. grocery stores now have a wider variety of items available. c. store owners are "tricking" customers in into buying more groceries by making them feel ashamed that their carts are not full. d. shoppers have become wealthier over the years and are willing to pay for the luxury of wide aisles and the big carts that go along with wider aisles.
The concept of opportunity cost is that
A) in a market economy, taking advantage of profitable opportunities involves some money cost. B) the economic cost of using a factor of production is the alternative use of that factor that is given up. C) taking advantage of investment opportunities involves costs. D) the cost of production varies depending on the opportunity for technological application.