Exchange Rate Stability Cannot Be Imposed by Adoption of ______________________

question 90

Multiple Choice

Exchange rate stability cannot be imposed by adoption of ______________________ and official intervention in the foreign exchange markets.

• A)pegged exchange rates
• B)pegged value rates
• C)pegged equity rates
• D)pegged volume rates
• E)pegged finance rates

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Equilibrium

Equilibrium in economics is the point where supply equals demand for a product, resulting in stable prices and volume of sales.

Efficient Portfolio

Provide the highest expected return for any degree of risk. The efficient portfolio is that which provides the lowest degree of risk for any expected return.

Expected Return

Expected Return is the anticipated profit or loss a portfolio generates over a specific period, based on historical or forecasted performance.