If a Country Wants to Keep a Foreign Currency Undervalued

question 167

Multiple Choice

If a country wants to keep a foreign currency undervalued against its domestic currency,________.

• A) it will buy both the foreign and the domestic currency
• B) it will sell both the foreign and the domestic currency
• C) it will buy the domestic currency and sell the foreign currency
• D) it will buy the foreign currency and sell the domestic currency

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Definitions:

Glycolysis

A metabolic process that breaks down glucose to produce energy, happening in the cytoplasm of cells.

Hydrolysis

A chemical reaction in which water is used to break bonds in molecules, such as the digestion of nutrients.

Oxygen

A chemical element essential for respiration in humans and vital for combustion; symbol O.

Blood Vessels

The network of arteries, veins, and capillaries that circulate blood throughout the body, supplying oxygen and nutrients while removing waste.