International Money and Finance

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Across
  1. 3. SHOCKS Flexible exchange rates can help absorb these better than fixed ones.
  2. 6. BOARD A strict form of fixed exchange rate where the country holds reserves equal to money in circulation.
  3. 8. In a managed float system, exchange rates fluctuate within this limited range.
  4. 9. A fixed exchange rate can help control this by maintaining currency stability.
  5. 13. A country with a fixed exchange rate needs large amounts of this to maintain the peg.
  6. 14. BALANCE A floating exchange rate system can help adjust this by making exports cheaper or more expensive.
  7. 16. A deliberate reduction in a currency's value in a fixed exchange rate system.
  8. 18. An increase in the official exchange rate of a currency in a fixed system.
  9. 19. Another term for a flexible exchange rate system.
  10. 20. The central bank of India, which intervenes under a managed float system.
Down
  1. 1. Central banks do this in a managed float system to stabilize the currency.
  2. 2. Another term for a managed float system, combining both fixed and flexible elements.
  3. 4. RATE The price of one currency in terms of another.
  4. 5. A type of exchange rate system where market forces determine currency value without central bank intervention.
  5. 7. FORCES In a flexible exchange rate system, supply and demand determine the exchange rate.
  6. 10. An exchange rate system where the currency is tied to another currency or a basket of currencies.
  7. 11. The act of buying and selling currencies in anticipation of price changes in a floating system.
  8. 12. A type of exchange rate where a currency is fixed to another but can be adjusted occasionally.
  9. 15. CRISIS A situation where a country with a fixed exchange rate faces pressure to devalue.
  10. 17. POLICY A policy tool that is more independent in a flexible exchange rate system.