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    Money Banking and Financial Markets Study Set 2
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    Exam 19: Exchange-Rate Policy and the Central Bank
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    Completely Flexible Exchange Rates Are Fairly Self-Explanatory, and Hard Pegs
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Completely Flexible Exchange Rates Are Fairly Self-Explanatory, and Hard Pegs

Question 2

Question 2

Essay

Completely flexible exchange rates are fairly self-explanatory, and hard pegs include dollarization and currency boards.These seem to be the extremes.Why do you think soft pegs are never used?

Correct Answer:

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