NO.PZ2023120801000107
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:
Correct Answer: C
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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