5 What monetary tools do authorities use in a freely floated exchange rate regime? None Interest rates Capital controls Direct intervention Page 5 of 10 Prev Page 6 Which of the following statements are true? Select all that apply Review Later Exchange Rate Stability Impossible Triangle Monetary Policy Independence Free Capital Mobility The impossible triangle looks at exchange rate stability, free capital mobility, and monetary policy independence In a pegged/fixed exchange rate monetary tools are not used A crawling peg does not allow an adjustment to the peg over time In a freely floated exchange rate, interest rates or direct intervention are not used 7 What kind of foreign exchange positions do foreign exchange brokers take? Review Later Speculative Hedging Arbitrage None, they act as intermediaries between banks (they don't engage in foreign exchange positions themselves) Page 7 of 10 Prev Page Next Page ver for each of the following questions. 8 What can the ACI do to address a breach of code? Select all that apply. Withdraw a member's membership Prosecute the foreign exchange dealer No action Withdraw a member's trading license Page 8 of 10 Prev Page Provide the best answer for each of the following questions Rev 9 What is not true regarding banks and proprietary positions? Banks can hold any amount of FX positions they'd like, without prior approval Speculative FX positions created a moral hazard for governments Prior to the banking crisis, banks were allowed to hold proprietary positions Banks can only hold FX positions if they can demonstrate that it supports their market making operations Page 9 of 10 Prev Page Provide the best answer for each of the following questions 10 Which of the following are examples of debasement methods? Select all that apply. Plugging Clipping Sweating Pulling Page 10 of 10 View Marked Question Prev Page