A-LevelEconomicsInternational economic issues9708/32 · Oct/Nov 2019 · Q281 Mark
In which exchange rate regime would the central bank of a country be best able to pursue an independent monetary policy to control the rate of inflation?
- (A)a freely floating exchange rate system
- (B)a system where the country's currency has a targeted value in relation to the US$
- (C)a system where the central bank buys and sells foreign currency at a fixed rate
- (D)where the country participates in a monetary union with other countries
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] A
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