Policy Makers Can Select from a Number of Different Exchange

question 33

Multiple Choice

Policy makers can select from a number of different exchange rate regimes and exchange rate policies.Which of the following policies would most likely represent a hard peg?

• A)a revaluation
• B)a devaluation
• C)a flexible exchange rate regime
• D)a dollarization

---

Definitions:

Implicit Rules

Unspoken, unwritten expectations and norms that govern behavior in groups and societies.

Explicit Rules

Clearly defined, written or spoken guidelines that dictate behavior or procedures within a group or society.

Interpersonal Communication

The process of exchange of information, feelings, and meanings between two or more people through verbal and/or non-verbal methods.

Richness

In communication theory, refers to the depth and complexity of information that communication mediums are capable of conveying.