Which One of the Following Is NOT a Way for a Country

question 13

Multiple Choice

Which one of the following is NOT a way for a country to defend its fixed exchange rate?

• A)Promote real appreciation of the country's currency
• B)Intervene in the foreign exchange market
• C)Alter domestic interest rates
• D)Impose some form of exchange control

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Definitions:

Issuing Federal Reserve Notes

The process by which the Federal Reserve, the central banking system of the United States, distributes its official currency.

Money Market Mutual Funds

Investment funds that pool money from investors to purchase short-term, high-quality debt securities as a way to offer returns with minimal risk.

Bank Deposit Rates

The interest rate paid by banks to depositors for keeping their money in savings accounts, fixed deposits, or other types of deposit accounts.

1970s

Refers to the decade from 1970 to 1979, characterized by significant political, social, economic, and cultural shifts worldwide.