Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies.

Related MCQs

• __________ is the deliberate downward adjustment in the official exchange rate, reduces the currency's value.
• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• If the value of the pound in other currencies is strong, then other things being equal:
• If the exchange rate is above the equilibrium level then in a floating exchange rate system:
• If the exchange rate is below the equilibrium level then in a floating exchange rate system:
• What is the effect of a currency devaluation under fixed exchange rates in the short run?
• What is the effect of a currency devaluation under fixed exchange rates in the short run?
• Under a fixed exchange rate system, a contractionary fiscal policy leads to a worsening in a nation’s balance-of-payments position if the resulting:
• Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?
• If the value of the pound in terms of other currencies rises: