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If a Central Bank Wants to Keep the Value of Its

question 97

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If a central bank wants to keep the value of its home currency fixed in the foreign exchange market, then an increase in the demand for its home currency will lead the central bank to


Definitions:

Subsidiary

A company that is controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Trade Union

An organization formed by workers from related fields that aims to protect their rights and interests through collective bargaining.

Post-employment Benefit Plan

A financial arrangement designed to provide benefits to employees after their employment has ended, such as pensions.

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