An Advantage of a Fixed Exchange Rate Regime Is That

question 30

True/False

An advantage of a fixed exchange rate regime is that the central bank does not have to keep foreign reserves.

---

Definitions:

Dishonored

A term typically used in banking and finance to refer to a payment instrument, such as a check or promissory note, that has been refused or rejected by the payer's bank due to insufficient funds or other reasons.

Interest-Bearing Note

A debt instrument in which the issuer pays interest to the holder, usually at a fixed rate, until the note reaches maturity.

Interest Revenue

Income earned from lending money or investing in interest-bearing assets.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed income security's life, including principal and interest.