Which of the following is NOT an operating instrument?

If a firm produces components of its goods and services in other countries, it is said to be outsourcing

Indicate whether the statement is true or false

To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market the Fed could ________ dollars and ________ pesos

A) buy; buy B) sell; sell C) sell; buy D) buy; sell E) None of the above answers is correct because the Fed cannot affect the U.S. exchange rate.