Under a Fixed Exchange Rate System, the Central Bank of a Country

question 33

Multiple Choice

Under a fixed exchange rate system, the central bank of a country that experiences a temporary current account deficit will most likely

• A)devalue the currency
• B)permit depreciation of the currency
• C)sell foreign currency to keep the exchange rate from depreciating
• D)buy foreign currency to influence exchange rates
• E)conduct open market purchases

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Definitions:

Communication

The process of sending and receiving symbols with attached meanings.

Countercultures

Groups in which the patterns of values and philosophies outwardly reject those of the organization or social system.

Subcultures

Groups exhibiting unique patterns of values and philosophies not consistent with the dominant culture of the larger organization or system.

Ethnic

Relating to a population subgroup with a common national or cultural tradition, often characterized by distinct language, culture, and sometimes physical characteristics.