How Would Monetary Easing by the Swiss National Bank Affect

question 39

Multiple Choice

How would monetary easing by the Swiss National Bank affect the value of the franc?

• A) It increases it since more people will take out loans at the low interest rates.
• B) It reduces it since it reduces demand for francs since Swiss interest rates are now lower.
• C) It increases it since it increases demand for francs since Swiss interest rates are now higher.
• D) It reduces it since the supply of francs on the foreign exchange market is now lower.

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