- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 7. Capital Flows and the FX Market
- Subject 2. Exchange Rate Regimes
CFA Practice Question
Which one does not belong to the properties of an ideal currency regime?
B. Each currency is fully backed by gold.
C. Currencies are fully convertible.
A. Exchange rates are credibly fixed.
B. Each currency is fully backed by gold.
C. Currencies are fully convertible.
Correct Answer: B
User Contributed Comments 2
| User | Comment |
|---|---|
| SalimBouch | why? |
| chen511 | ideal exchange rate policy: 1. fixed exchange rate 2. free capital flows 3. independent monetary policy |