II Matching: (1 Point Each) Below are a list of definitions of Exchange Rate reg

Question

II Matching: (1 Point Each) Below are a list of definitions of Exchange Rate regimes, you will match them to the list of exchange rate regimes below. A. Adopt the other country's currency as the legal tender. B. Floating with active interventions. C. Exchange rate is fixed against a major currency or some basket of currencies D. The exchange rate is determined by demand and supply in the foreign exchange market. E. A legislative commitment to fix exchange rate to a specific foreigrn currency F. Exchange rate fluctuates around a fixed target rate 1. Dollarization. 2. Currency Board. 3. Peg. 4. Target Band. 5. Managed Float.L 6. Free Float.

Explanation / Answer

Answer:

Dollarization: A

Currency Board: E

Peg:C

Target Band:F

Managed Float:B

Free Float:D

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