What are Special Drawing Rights?
Answer to relevant QuestionsThe IMF classifies all exchange rate regimes into eight specific categories that are summarized in this chapter. Under which exchange rate regime would you classify each of the following countries? Explain what is meant by the term impossible trinity, and why it is true. What are the main summary statements of the balance of payments accounts, and what do they measure? What is the difference between a direct foreign investment and a portfolio foreign investment? Give an example of each. Which type of investment is a multinational industrial company more likely to make? What is a structured investment vehicle (SIV)?
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