For a country with a fixed exchange rate that is running continuous overall payments surpluses the following is true.
A. The country has an overvalued currency.
B. The country's monetary authority will suffer losses on its official reserve holdings if the country's currency is revalued.
C. The country is in an optimal situation.
D. The country's monetary authority will eventually run out of foreign reserves.
Answer: B
Economics
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A) APC = 0.80. B) APC = 0.09. C) APC = 0.91. D) APC = 0.20.
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The required reserve ratio for a bank is set by:
a. Congress. b. the bank itself. c. the Treasury Department. d. the banking system. e. the Federal Reserve.
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