What are official international reserves of the central bank

Assignment Help Macroeconomics

Reference no: EM13897889

1. How can you quantify currency risk in a floating exchange rate system?

2. Why might it be hard to quantify currency risk in a target zone system or a pegged exchange rate system?

3. What is likely to be the most credible exchange rate system?

4. How can a central bank create money?

5. What are official international reserves of the central bank?

6. What is likely to happen if a central bank suddenly prints a large amount of new money?

7. What is the effect of a foreign exchange intervention on the money supply? How can a central bank offset this effect and still hope to influence the exchange rate?

8. How can a central bank peg the value of its currency relative to another currency?

9. Describe two channels through which foreign exchange interventions may affect the value of the exchange rate.

10. What was the Bretton Woods currency system?

Reference no: EM13897889

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