IB Economics 4.6.4 Relationship Between the Current Account and the Exchange Rate Flashcards

Flashcards for 4.6.4 Relationship Between the Current Account and the Exchange Rate (HL Only)

These interactive flashcards help IB Economics students Standard Level (SL) and Higher Level (HL) quickly review and memorize the essential definitions, formulas, and terms needed for success in IB Exams.

Each card focuses on 4.6.4 Relationship Between the Current Account and the Exchange Rate (HL Only) and is aligned with the IB Economics syllabus, ensuring focused revision on microeconomics, macroeconomics, and international trade.

Students can test themselves anytime, anywhere, perfect for reinforcing tricky concepts, learning IB terminology, and committing formulas to memory.

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In a fully floating exchange rate system as shown in Figure 1, what is the value of the central bank's reserve asset transactions?

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Zero (there is no central bank intervention to buy or sell currencies).

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