If a central bank wishes to lower the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets.
B) sell domestic currency and buy foreign assets.
C) attempt to raise domestic interest rates.
D) attempt to lower the domestic price level relative to foreign price levels.
B
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The demand for labor reflects the point that the
A) lower the real wage rate, the greater the quantity of labor demanded. B) higher the real wage rate, the greater the quantity of labor demanded. C) nominal wage rate and not the real wage rate determines the quantity of labor demanded. D) real wage rate does not affect the quantity demanded of labor. E) demand for labor depends on the supply of labor.
Virtual Currency System 2 (VCS2) is poses a __________ risk to nations in which is it used because ___________________________
a. High; it can be used directly by end users to buy real-world goods and services. b. High, it weakens central banks' abilitiesto control their monetary bases. c. Low; it can be spent only in virtual worlds. d. Low; when it is exchanged for real-world currencies, only a small portion of the exchange actually influences the nation's monetary base. e. Medium; its conversion into real-world currencies causes only minor movements in nations' M2 money multiplier.