Exchange-Rate Systems And Currency Crises MCQs

Option A: pegged exchange rates

Option B: freely floating exchange rates

Option C: managed floating exchange rates

Option D: crawling exchange rates

Correct Answer: pegged exchange rates ✔

Option A: very high rates of inflation occur domestically

Option B: foreigners discriminate against domestic products

Option C: technological advance is superior abroad

Option D: the domestic currency is undervalued relative to other currencies

Correct Answer: the domestic currency is undervalued relative to other currencies ✔

Option A: appreciates against foreign currencies

Option B: depreciates against foreign currencies

Option C: be officially revalued by the government

Option D: be officially devalued by the government

Correct Answer: appreciates against foreign currencies ✔

Option A: dual exchange rates

Option B: managed floating exchange rates

Option C: adjustable pegged exchange rates

Option D: crawling pegged exchange rates

Correct Answer: dual exchange rates ✔

Option A: pegged of fixed exchange rates

Option B: adjustable pegged exchange rates

Option C: managed floating exchange rates

Option D: free floating exchange rates

Correct Answer: adjustable pegged exchange rates ✔

Option A: gold

Option B: silver

Option C: a single currency

Option D: a basket of currencies

Correct Answer: a basket of currencies ✔

Option A: floating exchange rates

Option B: pegged exchanged rates

Option C: managed floating exchange rates

Option D: dual exchange rates

Correct Answer: floating exchange rates ✔

Option A: U.S exports tend to rise, and imports tend to fall

Option B: U.S imports tend to rise, and exports tend to fall

Option C: U.S foreign exchange reserves tend to rise

Option D: U.S foreign exchange reserves remain constant

Correct Answer: U.S imports tend to rise, and exports tend to fall ✔

Option A: dual exchange rate

Option B: adjustable pegged exchange rates

Option C: managed floating exchange rates

Option D: crawling pegged exchange rates

Correct Answer: crawling pegged exchange rates ✔

Option A: freely fluctuating exchange rates

Option B: adjustable pegged exchange rates

Option C: managed floating exchange rates

Option D: pegged or fixed exchange rates

Correct Answer: managed floating exchange rates ✔