Only Two Exchange Rate Regimes Can Be Considered Hard Pegs

question 55

Multiple Choice

Only two exchange rate regimes can be considered hard pegs. These are:

• A) currency boards and dollarization.
• B) dollarization and managed floating.
• C) flexible exchange rates and currency boards.
• D) the gold standard and inflation targeting.

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Definitions:

Net Cash Flows

The difference between cash inflows and outflows within a specified period.

Annual Operating Cash Inflows

The amount of money a business expects to receive from its operations over the course of a year.

Discount Rate

In discounted cash flow examination, the discount rate is used to evaluate the contemporary value of future cash inflows.

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost due to a change in activity or a decision.