The use of foreign exchange reserves to keep exchange rates
constant over time is called
A.
a floating exchange rate system.
B.
a fixed exchange rate system.
C.
barter exchange system.
D.
the Bretton Woods system.
"Managed float is superior to pegged exchange rate system
because it converses foreign exchange reserves in case of
speculative attacks on the currency" - Comment with reason
When it became known in 1997 that the Thai government had
insufficient foreign exchange reserves to maintain the exchange
rate, how did currency speculators respond? What policy did the IMF
suggest?
What is foreign exchange risk?
What are the causes of foreign exchange risk and what actions
would you take as a financial manager to mitigate the risk?
1. What are reserves? Discuss the various types of reserves used
in the U.S. banking system.
2. Explain two reasons governments feel the need to implement
protectionist measures.