To Force the Value of the Dollar to Appreciate Against

question 60

Multiple Choice

To force the value of the dollar to appreciate against the pound, the Federal Reserve should:

• A) sell pounds for dollars in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.
• B) sell dollars for pounds in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.
• C) sell dollars for pounds in the foreign exchange market and the Bank of England should not intervene.
• D) sell dollars for pounds in the foreign exchange market and the Bank of England should sell dollars for pounds in the foreign exchange market.

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Definitions:

Planning Process

A systematic series of steps that helps an individual or organization to set goals, strategies, and evaluate the paths to achieving them.

Situation Analysis

The assessment of internal and external factors affecting an organization's performance to identify strengths, weaknesses, opportunities, and threats.

Key Message

Theme or idea in a strategic plan that is specially designed to communicate an essential point or view that is critical to accomplishing an overall objective.

Achieve Objectives

The process of successfully meeting goals or targets through planned actions and strategies.