Answer:
D. all of the above
Explanation:
THESE IS THE COMPLETE QUESTION BELOW;
Under a fixed exchange rate regime, the government of the country is officially responsible for
A) intervention in the foreign exchange markets using gold and reserves.
B) setting the fixed/parity exchange rate.
C) maintaining the fixed/parity exchange rate.
D) all of the above.
A fixed exchange rate can be regarded as regime that is been applied by either government or central bank , which is responsible for tieing official currency exchange rate of a country to that of another currency of a country or the price of gold. Government use fixed exchange rate system to keep within a narrow band the value of currency. It should be noted that Under a fixed exchange rate regime, the government of the country is officially responsible for;
✓ maintaining the fixed/parity exchange rate.
✓intervention in the foreign exchange markets using gold and reserves.
✓setting the fixed/parity exchange rate.
