A Main Purpose of Exchange Stabilization Funds Is to

question 91

Multiple Choice

A main purpose of exchange stabilization funds is to

• A) permit a country to overvalue its currency in the exchange markets.
• B) permit a country to undervalue its currency in the exchange markets.
• C) increase the supply of foreign currency when imports increase and exceed exports.
• D) decrease the supply of foreign currency when imports increase and exceed exports.

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Definitions:

Wage Rate

The amount of compensation or payment given to an employee for work performed, typically expressed as a rate per hour or piece.

Zinnia

A genus of plants of the sunflower tribe within the daisy family, known for their vividly colored flowers.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

Illegal Immigrants

People who live in or enter a nation without the necessary legal approval or paperwork.