In a fixed exchange rate regime, the government Select one: a. establishes capital controls. b. establishes exchange rate controls. c. buys and sells currency through the central bank. d. expands the money supply.

A direct exchange quotation is one in which the exchange rate is quoted O a. For the immediate delivery of currencies exchanged O b. For the future delivery of currencies exchanged O c. In terms of how many units of the domestic currency can be converted into one unit of foreign currency O d. In terms of how many units of the foreign currency can be converted into one unit of domestic currency

From your understanding, discuss the advantages and disadvantages of a fixed change rate regime. Give examples of two countries that adopt a fixed exchange rate system by mentioning which currency they are pegged to and what rate

You are given the exchange rate between the U.S. dollar and the Canadian dollar. You are also given the exchange rate between the U.S. dollar and the Mexican peso. What is the name given to the Canadian dollar per Mexican peso exchange rate derived from the information that was provided?  A.  Swap rate   B.  Depositary rate   C.  Forward rate   D.  London Interbank rate   E.  Cross-rate

D3) Finance Use covered interest rate parity (CIP) to show that a fixed exchange rate and free capital flows imply that a central bank cannot set the interest rate independently from the interest rate set by the reference currency's central bank.

You are the governor of the BSP. The newly elected president wants to have a meeting with you together with his economic goals are aligned. Among the agenda is to discuss the continued depreciation of the Philippine peso. Being in charge of the country's monetary policies, use any monetary instruments, to explain to the president how any of the monetary tools can be used to strengthen the local currency. you can use these instruments:1. Bank Rate2. Open Market Operation or;3. Reserve Requirement Ratio

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Which of the following is NOT a function of the International Monetary Fund? Answer a. Serve as lender of last resort for national governments b. Administer an international foreign exchange system c. Establish the SDR system nations utilize to settle international payment obligations d. Establish and administer each nation's fiscal and monetary policies