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:

Investing Activity

Transactions involving the acquisition or disposal of long-term assets and investments not considered cash equivalents, reflected in a company's cash flows.

Loss

A financial situation in which total costs exceed total revenues, leading to a negative net income.

Indirect Method

A cash flow reporting technique that starts with net income and adjusts for cash-based transactions.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company's products or services, often reflected in its cash flow.