Exchange RateCurrency pegging refers to:Floating exchange rateFixed exchange rateAppreciating exchange rateDepreciating exchange rate

A crawling peg refers to: Question 1 Answer a. a large and sudden currency depreciation. b. a fixed exchange rate regime in which the currency is adjusted very frequently (e.g., monthly) to reflect market conditions. c. a fixed exchange rate regime in which the currency is adjusted infrequently (e.g., every 2 years) to reflect market conditions. d. a drag on exchange rate adjustment caused by imperfect markets.

Which of the following statements is correct:I. Crawling peg regime allows the currency to depreciate gradually over time within a limited range;II. Free float can be characterised by supply and demand forces determining the exchange rate with complete independence from government;III. According to linked exchange rate regime, one currency is directly linked to the weighted average of a basket of major currencies such as USD, EUR and GBP;IV. Exchange rate regimes are established each nation-state, or monetary union;V. Managed float regime used to be popular in the past but recently the major economies have established the floating exchange rate regime.Question 5Select one:a.All of the statement are correctb.All of the statement are falsec.Only I is correctd.Only I and V are correcte.Only I, II, III and V are correctf.Only II and V are correctg.Only II and III are correcth.Only III is correcti.Only IV is correctj.Only II is correctk.Only II and IV are correct

Exchange rates are commonly quoted using acronyms for the national currencies they represent.

An exchange rate regime that allows the currency to appreciate gradually over time but within a specified limited band set by government is a:Group of answer choicescrawling peg regime.partial floating regime.floating rate regime.managed floating regime.

The rate at which one currency is converted into another is known as the:Question 6Select one:a.Carry over rate.b.Currency swap rate.c.Exchange rate.d.Fluctuation rate.