A currency bailout
A. Is considered to be a dangerous move by the central banks of the strongest economies worldwide.
B. Occurs when money is borrowed from an economy to increase the value of its currency.
C. Is considered to be a dangerous move by the International Monetary Fund.
D. Can help avoid a situation in which a weakness in one currency undermines other currencies.
Answer: D
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In what way is each and every one of the economies of the more than 200 countries of the world similar?
A. all use the same macroeconomic policies B. each focuses on a Keynesian perspective C. all have their own distinctive characteristics D. each focuses on a neoclassical perspective
The upward trend in the currency-deposit ratio during 1994-2007 can be explained by
A) the increased holdings of U.S. currency by foreigners. B) bank panics. C) a drop in the rate of interest paid on checking deposits. D) high taxes and illegal activities.