How Does a Country Maintain a Fixed Exchange Rate

question 133

Multiple Choice

How does a country maintain a fixed exchange rate?

• A) By intervening in the foreign exchange markets and buying or selling currency as needed to achieve the desired exchange rate.
• B) By forbidding foreign exchange markets to trade currency at anything other than the official exchange rate.
• C) By setting domestic interest rates to achieve purchasing power parity as the desired exchange rate.
• D) By intervening in import and export markets to achieve the desired current account and exchange rate.

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Definitions:

Semimembranosus

A large muscle of the posterior thigh, part of the hamstrings group, involved in hip extension and knee flexion.

Agenda Items

Particular subjects or matters that are planned to be covered or addressed in a meeting.

Dialogues

Conversations between two or more people as a feature of a book, play, or movie.

Individual Members

Persons belonging to a group or organization, each with unique attributes and contributions, as distinct from collective entities.