To maintain a fixed exchange rate via intervention in the markets, a government should:
a. be ready to crack down on illegal traders.
b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines.
c. be ready to sell the home currency when the home currency's value declines.
d. be ready to borrow funds from international banks when the home currency's value declines.
Ans: b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines.
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Division of iron ore between the production of bridge girders and tanker drums is an example of
a. a distribution problem. b. production planning. c. input-output analysis. d. both output selection and distribution
Father says, "Earn a B-average on your next report card and I'll help you buy a car." An economist would say that this parent is providing his child a(n)
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