A Fixed Exchange Rate Is Enforced by

question 23

Multiple Choice

A fixed exchange rate is enforced by

• A)national governments, who establish appropriate trade barriers for each country with whom they trade
• B)national governments, who manipulate gold reserves appropriately
• C)central banks, who buy and sell appropriate currencies
• D)the International Monetary Fund, which offers loans to appropriate countries
• E)local governments, who manipulate capital reserves appropriately