To Keep the Exchange Rate Constant, an Increase in the Demand

question 65

True/False

To keep the exchange rate constant, an increase in the demand for a country's currency should be
matched by a corresponding increase in supply to be administered by the government.

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another.

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, albeit without any intention from the contracting parties to benefit the third party.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.