Policy Makers Can Select from a Number of Different Exchange

question 2

Multiple Choice

Policy makers can select from a number of different exchange rate regimes. One of those options is a "hard peg". Which of the following best represents a hard peg?

• A) A crawling peg.
• B) A revaluation.
• C) A currency board.
• D) The EMS.
• E) A flexible exchange rate regime.

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Definitions:

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A system of ideas and objectives that guide the development, preparation, and interpretation of financial reporting and accounting standards.