Suppose the Target Exchange Rate Set by the Fed Is

question 306

Multiple Choice

Suppose the target exchange rate set by the Fed is 100 guilders per dollar. If the demand for dollars temporarily decreases, to maintain the target exchange rate, the Fed can

• A) sell dollars.
• B) buy dollars.
• C) increase U.S. exports.
• D) increase U.S. imports.

---

Definitions:

Evaluative Criteria

Standards or benchmarks that consumers use to judge the merits of competing options.

Attitude Choice

The process by which individuals form judgments and preferences based on their feelings and beliefs towards an object or situation.

Mobile Payments

Transactions made for goods or services through a mobile device, such as a smartphone or tablet.

System

A set of interconnected elements or parts that work together as a whole for a common purpose or function.