CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Which statement is false regarding the ideal exchange rate regime?
A. An ideal exchange rate regime does not exist.
B. Credibly fixed exchange rates and full convertibility imply that there would be only one currency in the world.
C. In an ideal exchange rate regime all countries should be able to pursue a common set of domestic economic goals.
Explanation: Ideally, every country should be able to undertake fully independent monetary policy in pursuit of its own domestic economic objectives.

The three conditions are not consistent.

User Contributed Comments 0

You need to log in first to add your comment.