In a Fixed Exchange Rate Regime,the Value of a Currency

question 62

Multiple Choice

In a fixed exchange rate regime,the value of a currency is pegged to ________.

• A)an anchor currency
• B)a currency board
• C)a dirty float
• D)an interest rate standard such as the Treasury bill rate in the U.S.

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Definitions:

Creditor

An individual or institution to whom money is owed by a debtor.

Damages Award

A financial compensation ordered by a court to be paid to a plaintiff by the defendant as restitution for loss or injury.

Furtherance

An action taken to advance or promote a particular cause, objective, or interest.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to settle its debts, with any remaining funds distributed to owners or shareholders.