What is the Official Reserves Account (ORA), and why is it more important for countries under a fixed exchange rate regime than for ones under a floating exchange rate regime?
What will be an ideal response?
Answer: The ORA is the total reserves held by official monetary authorities within the country. Under a fixed exchange regime a country's currency is convertible into a fixed amount of another country's currency. To keep the relationship between currencies at equilibrium, it may become necessary for the government to buy or sell official reserves until the equilibrium is restored. Under a variable rate regime this is not necessary as exchange rates are allowed to change and official reserves no longer serve the same purpose as under the fixed rate regime.
You might also like to view...
While using integrated marketing communications, the communications process should start with a(n) ________
A) advertising strategy B) competitive-parity analysis C) long-term public relations plan D) audit of all potential customer touch points E) strategy for implementing a social media presence
In the second step of the marketing research process, it is most important to do which of the following?
A) identify marketing goals B) identify existing information relevant to the research question C) determine the research budget D) formulate the research question E) ensure the reliability of the research
In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc, is concerned with A) how the corporation can best fulfill any ethical duty to society
B) the effect on corporate profits of ignoring any ethical duty to society. C) whether the corporation owes any ethical duty to society. D) all of the choices.
The goal of the biological approach to job design is to
A. distribute jobs only to specialized individuals who have the physical abilities for those tasks. B. increase the meaningfulness of jobs so that only specialized individuals can work on them. C. reduce the physical demands of certain jobs by improving the physical work environment. D. make the work simple so that anyone can be trained quickly and easily to perform it. E. improve employees' physical capabilities so that they can perform demanding tasks.