If a Government Is Going to "Support" Its Own Currency

question 45

Multiple Choice

If a government is going to "support" its own currency, it will ____.

• A)sell more of its currency on the foreign exchange market
• B)try to import more foreign goods
• C)try to export less to foreign nations
• D)buy more of its currency on the foreign exchange market

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Definitions:

Fencing

The sport of fighting with swords, particularly foils, épées, or sabres, according to set rules; also refers to a barrier or structure serving as a boundary or means of protection.

Mowing

The process of cutting down grass or other vegetation to maintain land or lawn appearance and health.

Special Warranty Deed

A type of deed in which the seller guarantees the title only against defects arising during their ownership and not against defects existing before that time.

Warrants

Warrants are financial instruments issued by companies that give the holder the right to purchase company stock at a specific price before a certain date.