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Basic Question 1 of 15

Which one does not belong to the properties of an ideal currency regime?

A. Exchange rates are credibly fixed.
B. Each currency is fully backed by gold.
C. Currencies are fully convertible.

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
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

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

CFA® 2024 Level I Curriculum, Volume 1, Module 7.