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Basic Question 4 of 15

A country's domestic currency will be issued only against foreign exchange and it remains fully backed by foreign assets. This country most likely has a ______.

A. managed float
B. currency board system
C. target zone

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Craig Baugh

Learning Outcome Statements

describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows

CFA® 2025 Level I Curriculum, Volume 1, Module 7.