NO.PZ2023052301000065
问题如下:
Which of the following statements best characterizes external strength for a non-reserve currency sovereign country?
选项:
A.
The ability to impose and enforce strict capital controls
B.
The establishment of a fixed exchange rate regime
C.
The ability to generate sufficient stable foreign currency cash inflows
解释:
C is correct.
A key factor influencing whether a non-reserve currency sovereign government can meet external debt obligations is external liquidity and solvency, or the ability to generate sufficient, stable foreign currency cash inflows to meet interest and principal payments on external debt. A is incorrect, as capital controls may restrict the ability to generate FX inflows. B is incorrect, as a fixed exchange rate regime may cause instability in the case of currency devaluation.
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