Under a fixed exchange rate regime, the government of the country is officially responsible for ___

Question

03-07-2021
Business

Answered

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Under a fixed exchange rate regime, the government of the country is officially responsible for ___

Sagot :

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ayfat23 ayfat23 · Answer 1 · 2021-07-05T21:58:14-04:00

Answer:

D. all of the above

Explanation:

THESE IS THE COMPLETE QUESTION BELOW;

Under a fixed exchange rate regime, the government of the country is officially responsible for

A) intervention in the foreign exchange markets using gold and reserves.

B) setting the fixed/parity exchange rate.

C) maintaining the fixed/parity exchange rate.

D) all of the above.

A fixed exchange rate can be regarded as regime that is been applied by either government or central bank , which is responsible for tieing official currency exchange rate of a country to that of another currency of a country or the price of gold. Government use fixed exchange rate system to keep within a narrow band the value of currency. It should be noted that Under a fixed exchange rate regime, the government of the country is officially responsible for;

✓ maintaining the fixed/parity exchange rate.

✓intervention in the foreign exchange markets using gold and reserves.

✓setting the fixed/parity exchange rate.

Sagot :

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