When the Russian Ruble Reached the Limits of the Bands

question 13

Multiple Choice

When the Russian Ruble reached the limits of the bands about its managed float targets (Ru5.70/$ to Ru6.35/$) in 1997, the Russian government would intervene in the markets to stabilize the Ruble. If the exchange rate approached Ru5.70/$ the government would ________ Rubles using foreign exchange and gold, or if the exchange rate approached Ru6.35/$ they would ________ Rubles.

• A) buy; sell
• B) sell; buy
• C) buy; buy
• D) sell; sell

---

Definitions:

Incomplete

Not having all parts or elements; lacking something.

Private Ownership Rights

Legal entitlements that allow individuals or companies to own property and assets, giving them control over use, management, and disposal.

Well Enforced

A term indicating that laws or regulations are effectively implemented and adhered to.

Future Value

The value of an investment or sum of money projected at a future date, taking into account factors like interest rates or returns.