IN-CLASS QUIZZ 05

What is a regime in which the domestic currency is pegged to a selected foreign currency at an
exchange rate set by law called?

a)       monetary union

b)      currency board

c)       monetary parity

d)      monetary unification


What kind of exchange rate regime operates in Czechia?

a)       fixed exchange rate

b)      floating exchange rate

c)       hybrid exchange rate

d)      currency board


What is characteristic of a crawling peg regime?

a)       the central parity is fixed

b)      the central parity is adjusted within a known interval and range

c)       the central parity is adjusted according to the evolution of the selected economic
variable

d)      the exchange rate is fixed to a basket of foreign currencies


Which regime assumes that the central bank does not influence the exchange rate in any way?

a)       managed floating

b)      independent floating

c)       inflationary floating

d)      intervention floating


What is a situation in which exchange rate stability is combined with full financial integration
called?

a)       monetary union

b)      independent floating

c)       full capital controls

d)      inflation targeting