10.
In Sept 2011 the SNB announced that ‘it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20, but in Jan 2015 the SNB abruptly stopped its interventions in the foreign exchange market. Why did the SNB stop fixing the euro exchange rate?
a) To prevent continuous appreciation
b) To prevent a continuous depreciation
c) To prevent a too large expansion of money supply leading to inflation
d) To prevent a too large contraction of money supply leading to deflation
e) To prepare its quest of membership in the EU and the eurozone
Respuesta: c