Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ?

Related Mcqs:

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?

A. freely fluctuating exchange rates B. adjustable pegged exchange rates C. managed floating exchange rates D. pegged or fixed exchange rates...

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?

A. dual exchange rate B. adjustable pegged exchange rates C. managed floating exchange rates D. crawling pegged exchange rates...

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?

A. U.S exports tend to rise, and imports tend to fall B. U.S imports tend to rise, and exports tend to fall C. U.S foreign exchange reserves tend to rise D. U.S foreign exchange reserves remain constant...

Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

A. pegged of fixed exchange rates B. adjustable pegged exchange rates C. managed floating exchange rates D. free floating exchange rates...

Which exchange rate mechanism in intended to insulate the balance of payments from short-term capital movements while providing exchange rate stability for commercial transactions ?

A. dual exchange rates B. managed floating exchange rates C. adjustable pegged exchange rates D. crawling pegged exchange rates...