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Floating exchange rate: Quiz


Question 1: In cases of extreme appreciation or depreciation, a ________ will normally intervene to stabilize the currency.
Central bankFederal Reserve SystemBank for International SettlementsOpen market operations

Question 2: There are ________ who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates.
EconomicsFriedrich von HayekEconomistKeynesian economics

Question 3:
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a ________'s value is allowed to fluctuate according to the foreign exchange market.
CurrencyCoinISO 4217Cyprus

Question 4: As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign ________, and to preempt the possibility of having a balance of payments crisis.
Real Business Cycle TheoryKeynesian economicsBusiness cycleFinancial crisis

Question 5: This may not necessarily be true, considering the results of countries that attempt to keep the prices of their currency "strong" or "high" relative to others, such as the UK or the Southeast Asia countries before the ________.
Philippines1997 Asian Financial CrisisFinancial crisisSubprime mortgage crisis

Question 6: Markets
Futures exchange
Retail forex
Stock marketFutures contractStock exchangeForeign exchange market

Question 7: Products
Currency future
Non-deliverable forward
Forex swap
Currency swap
Foreign exchange option
ISO 4217CyprusCoinCurrency

Question 8: [1] This is the consequence of frequent free floating countries' reaction to exchange rate movements with monetary policy and/or intervention in the ________.
Stock exchangeFutures contractStock marketForeign exchange market

Question 9: Exchange rates
Currency band
Exchange rate regime
Fixed exchange rate
Floating exchange rate
Linked exchange rate
Exchange rateForeign exchange marketForeign exchange reservesCurrency pair


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