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:

Intensity

The degree of strength, force, or energy with which a feeling, phenomenon, or condition is expressed or occurs.

Duration

The length of time that something continues or exists, often used to describe the time span of events or conditions.

Transtheoretical Model

A model in psychotherapy that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual through the stages of change to Action and Maintenance.

Stages of Change

A model that describes the process by which individuals motivate themselves and move toward personal behavior change in several distinct steps.