B. A fixed exchange rate magnifies the ability of monetary policy to stabilize the domestic economy.
C. With a fixed exchange rate, net exports always tend to equal zero.
D. Because the central bank is responsible for maintaining the fixed exchange rate, it is not free to use monetary policy to stabilize the domestic economy.
I can create a new currency that nobody can replicate except for me. I will use my blood as the print, and then only ink matching my DNA will be authentic.
How do I go about starting the new currency? How can the exchange rate between my new currency and the dollar be determined?
What is the best way to get financial institutions to borrow my new currency from me instead of borrowing US Dollars?
A friend who has personal debts from 1992 in Italian lira, German marks, Spanish Pesetas, and Greek drachmas wants to pay his debts. But, of course now they are in Euros. What exchange rate does he use to figure the value in Euros? When the currency conversion took place, I assume each former currency had a fixed rate to the Euro? What is it for these currencies? Thank you.
On frequent time slot the exchange rate between any two currencies changes. I believe this is done with a 15 minute delay. How is the final rate for the day determine. That is the rate that gets reported in most news briefings at the end of the day?
If the exchange rate falls from 10 francs per dollar to 6 french francs per dollar then from the perspective of an American consumer, what happens to the attractiveness of french goods?
