Question

Which of the following currency is currently under the currency board system? a. The Euro. b....

Which of the following currency is currently under the currency board system?

a. The Euro.

b. The Mexican peso.

c. The Hong Kong dollar.

d. The Swiss franc

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The right answer is :-

(C) Hong Kong Dollar

Explanation :-

Out of the given options , Hong kong dollar is under currency board system currently.

Hong kong money authority maintains currency stability by backing the currency to foreign currency (US Dollar). This is known as linked exchange rate system.

While Euro is a free floating currency to which other currencies are pegged. Mexican peso is a free floating currency. Swiss Franc unpegged from Euro in 2015.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hong Kong is has a “currency board” system. This means they have a fixed exchange rate...
Hong Kong is has a “currency board” system. This means they have a fixed exchange rate regime with free flows of capital. In fact, the Hong Kong dollar has been pegged to the U.S. dollar at an exchange rate of HK$7.80 = US$1 (unlike mainland China, which has a different currency).   In 2017, Hong Kong had a more than US$32 billion trade deficit with the United States. Thinking about the balance of payments structure, discuss three different ways that this...
Hong Kong is has a “currency board” system. This means they have a fixed exchange rate...
Hong Kong is has a “currency board” system. This means they have a fixed exchange rate regime with free flows of capital. In fact, the Hong Kong dollar has been pegged to the U.S. dollar at an exchange rate of HK$7.80 = US$1 (unlike mainland China, which has a different currency).   In 2017, Hong Kong had a more than US$32 billion trade deficit with the United States. Thinking about the balance of payments structure, discuss three different ways that this...
The following are quotes from a currency dealer in the New York currency market: Currency Spot...
The following are quotes from a currency dealer in the New York currency market: Currency Spot quote Australian dollar (AUD/USD) 0.7832 - 0.7834 Brazilian real (USD/BRL) 3.2335 - 3.2365 British pound (GBP/USD) 1.3507 - 1.3509 Canadian dollar (USD/CAD) 1.2555 - 1.2557 Euro (EUR/USD) 1.1948 - 1.1949 Japanese yen (USD/JPY) 111.44 - 111.45 Mexican peso (USD/MXP) 19.3653 - 19.3718 New Zealand dollar (NZD/USD) 0.7181 - 0.7184 Thai baht (USD/THB) 32.1240 - 32.1430 Egyptian pound (USD/EGP) 17.6860 - 17.8460 South Korean won...
Consider the following. One of the scenarios is an example of triangular arbitrage opportunity. Pick the...
Consider the following. One of the scenarios is an example of triangular arbitrage opportunity. Pick the correct answer. A. buying a currency at NAB's ask and selling at ANZ's bid, which is higher than NAB's ask. B. buying Hong Kong dollars from NAB (quoted at A$.55) that has quoted the South African rand (SAR)/ Hong Kong dollar (HK$) exchange rate at SAR2.50 when the spot rate for the rand is A$.20. C. buying Hong Kong dollars from a bank (quoted...
1- An exporter who is to receive payment in foreign currency in three months and who...
1- An exporter who is to receive payment in foreign currency in three months and who wants to engage in “hedging” would __________ the foreign currency on the three-months forward market in order to protect himself/herself from __________ of the foreign currency. a. buy; an appreciation b. buy; a depreciation c. sell; an appreciation d. sell; a depreciation 2- A given exchange rate will be more or less the same in all of the world’s financial markets because of a....
Which of the following statements is not correct about the effects of the​ euro? A. The...
Which of the following statements is not correct about the effects of the​ euro? A. The euro helped economic growth in euro zone countries by making it easier for consumers and firms to buy and sell across borders. B. The euro is used as currency in​ Germany, France, and Italy. C. The euro increased the ability of participating countries to run independent monetary policies. D. The euro reduced costs and increase competition.
Explain the probable result of the following events on the currency exchange rates below (assume all...
Explain the probable result of the following events on the currency exchange rates below (assume all other factors stay constant). A popular movie released in the United States, but set in Spain significantly increases the number of U.S. tourists visiting Spain.     The euro will   (Click to select)   stay constant   appreciate   depreciate  relative to the U.S. dollar. The Federal Reserve undertakes expansionary monetary policy by cutting interest rates.     The U.S. dollar will   (Click to select)   stay constant   depreciate   appreciate  relative to other foreign currencies. A destructive typhoon in the Philippines increases...
The currency board on a local money market has the following information. Currency      Spot rates           ...
The currency board on a local money market has the following information. Currency      Spot rates            One month forward        Three months forward US dollar     1.8101–1.8113       0.22–0.18c pm              0.62–0.58c pm Euro           1.4366–1.4380       0.10–0.15c dis               0.32–0.40c dis Jap.Yen     192.802–194.347      1.002–0.960y pm           2.234–2.171ypm Required: (a)show the spread after one and three months, and (b)and convert the following into sterling: (i)Receive $100,000 in one month; (ii)Pay 40,000,000 yen in three months; (iii)Pay €250,000 in one month; (iv)Receive €40,000 in three months; and...
According to uncovered interest rate parity, if the interest rate in Japan decreases, all else equal,...
According to uncovered interest rate parity, if the interest rate in Japan decreases, all else equal, ________. Select one: a. Japanese yen is expected to depreciate against U.S dollar b. U.S. dollar is expected to depreciate against Japanese yen c. the exchange rate of Japanese yen against U.S. dollar remains unchanged d. U.S. dollar is expected to appreciate against Japanese yen If U.S. residents increased their imports of cheese from Switzerland, the Swiss central bank would need to ________ in...
Damelin Bernard is a foreign currency dealer who is provided with the following information:         Euro/U.S....
Damelin Bernard is a foreign currency dealer who is provided with the following information:         Euro/U.S. dollar = €0.8518/$         British pound /U.S. dollar = £0.7548/$         British pound/Euro = £0.8863/€ 2.1. Ignoring transaction costs, is there any arbitrage opportunity based on these quotes?           a.       Yes, because the Pound is overvalued in the £0.8863/€ quote.           b.       Yes, because the Pound is undervalued in the £0.8863/€ quote. (Correct)             c.         No arbitrage opportunity exists the answer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT