Under a System of Fixed Exchange Rates, Other Things Equal

question 70

Multiple Choice

Under a system of fixed exchange rates, other things equal, if the par value of the fixed exchange rate is overvalued, then its central bank's effort to prevent the currency from ______ will lead to a (an) ______.

• A) depreciating, increase in international reserves
• B) depreciating, decrease in international reserves
• C) appreciating, increase in international reserves
• D) appreciating, decrease in international reserves

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Definitions:

Islam

A monotheistic religion founded in the 7th century based on the teachings of Prophet Muhammad as presented in the Qur'an.

Discriminatory

Showing bias or prejudice resulting in unfair treatment of individuals or groups based on characteristics such as race, age, or gender.

Yom Kippur

The holiest day of the Jewish year, also known as the Day of Atonement, during which individuals reflect upon their actions and seek forgiveness for their sins.

Accommodations

Adjustments or modifications made to spaces, policies, or practices to support individuals’ specific needs, such as accessibility for people with disabilities.