Since 2009 the IMF's Exchange Rate Regime Classification System Uses

question 48

Multiple Choice

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, countries with "fixed exchange rates" are considered to have:

• A) a residual agreement.
• B) soft pegs.
• C) hard pegs.
• D) floating arrangements.

---

Definitions:

Accounting Profits

The net income of a company calculated by subtracting total expenses from total revenues, following accounting rules.

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single firm can supply a product or service at a lower cost than any potential competitor, thus dominating the market.

Natural Monopoly

A market situation where a single supplier is most efficient in providing goods or services due to the high fixed or startup costs relative to the size of the market.