Which of the Following Mechanisms Cannot Be Adopted by a Country

question 11

Multiple Choice

Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate?

• A)The government can buy or sell foreign currency in order to influence the actual exchange rate.
• B)The government can allow the currency to self-adjust and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime.
• C)The government can impose a form of exchange control.
• D)The government can alter domestic interest rates in order to influence short-term capital flows.

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Definitions:

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a particular role within an organization.

Organic

Referring to food produced without the use of chemical fertilizers, pesticides, or other artificial agents, also used broadly to describe natural processes.

Organizational Culture

The collective norms, ideologies, and rituals that define the cultural and emotional fabric of a company.

Principled Dissent

The act of expressing disagreement or opposition based on one's moral, ethical, or professional standards or principles, often done to prompt consideration of alternative perspectives.