The IMF's Exchange Rate Regime Classification Identifies ________ as the Most

question 32

Multiple Choice

The IMF's exchange rate regime classification identifies ________ as the most rigidly fixed, and ________ as the least fixed.

• A)exchange arrangements with no separate legal tender; independent floating
• B)crawling pegs; managed float
• C)currency board arrangements; independent floating
• D)pegged exchange rates within horizontal bands; exchange rates within crawling pegs

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Definitions:

Market Rate

The current price at which an asset or service can be bought or sold in a particular market.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value.

Issued At 98

A term indicating that a bond or other security was issued at a price below its par or face value, in this case, at 98% of the face value.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total assets.