Under the Pure Flexible Exchange Rate Regime

question 20

Multiple Choice

Under the pure flexible exchange rate regime,

• A)the combined balance on the current and capital accounts will be equal in size,but opposite in sign,to the change in the official reserves.
• B)the balance on the current and capital accounts will be equal in size,but opposite in sign.
• C)a current account surplus or deficit must be matched by an official reserves deficit or surplus.
• D)a capital account surplus or deficit must be matched by an official reserves deficit or surplus.

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Definitions:

Sample Mean

The mean of a set of samples, obtained by adding all the values together and then dividing by the total count of observations.

Weekdays

The days of the week typically considered as working days, usually Monday through Friday, excluding the weekend.

Sampling Distribution

A statistical function that describes all the possible values and likelihoods that a statistic can take within a given range.

Statistic

A numerical value that summarizes or describes an aspect of a set of data.