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61) The IMF's primary role is to identify exchange rate regimes.

62) The SDR is equal in value to the U.S. dollar.

63) Dollarization of a currency occurs when a country takes all of its own currency out of circulation and replaces it with U.S. dollars.

64) An independently floating exchange rate is adjusted periodically at a fixed pronounced rate.

65) None of the new members of the EU has yet been allowed to adopt the euro as its currency.

66) The major objective of the European Central Bank is to control taxes as a means of deficit spending.

67) According to the Treaty of Maastricht, a euro applicant must have a total outstanding government debt that does not exceed 60% of its GDP.

68) Inflation in the United States would cause China's massive dollar reserves to lose value.

69) Demand for a country's independently floating currency is a function of the demand for that country's goods, services, and financial assets.

70) A currency that is pegged to another currency is usually changed on a supply-and-demand basis.

 

 

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