For a Country,a Fully Floating Currency Regime

question 25

Multiple Choice

For a country,a fully floating currency regime:

• A) allows a government to remove most restrictions on investment flows.
• B) relieves the central bank of the need to maintain a particular fixed value of the currency in the FX markets.
• C) does not require a country to maintain large amounts of FX reserves to support the currency.
• D) all of the given answers are correct.

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Definitions:

Percentage of Sales

A financial ratio that compares a particular figure or amount to the total sales of a company.

Dollars

The official currency of the United States, also used as a standard monetary unit in many other countries and economic contexts.

Break-Even

The point at which total costs equal total revenue, indicating that a business is neither making a profit nor a loss.

Monthly

Monthly pertains to something occurring or being done every month or once a month.