Under a Fixed Exchange Rate System, a Government Is at Risk

question 208

True/False

Under a fixed exchange rate system, a government is at risk of running out of foreign currency reserves when the country's imports exceed its exports.

---

Definitions:

Ostracism

The exclusion or rejection of an individual from a social or professional group.

Silent Treatment

A form of psychological manipulation or punishment where communication is withheld from the target as a means of expressing disapproval or to induce feelings of insignificance.

Aggressive Actions

Behaviors intended to cause harm or pain to another person, often as a result of feelings of anger or hostility.

Blue-Ribbon Panel

A group of individuals with a high level of knowledge or expertise selected to investigate, study, or analyze a given question.