Under a Fixed Exchange Rate Regime,if the Domestic Currency Is

question 35

Multiple Choice

Under a fixed exchange rate regime,if the domestic currency is initially overvalued,that is,below par,the central bank must intervene to purchase the ________ currency by selling ________ assets.

• A)domestic;foreign
• B)domestic;domestic
• C)foreign;foreign
• D)foreign;domestic

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Definitions:

Regular Customer

A customer who frequently purchases products or services from the same business, showing loyalty and consistency in their patronage.

Complete Refund

The process of giving back the full amount of money paid by a customer for a product or service, often due to dissatisfaction or a defect.

Assembly

The process of putting together components or parts to build a product or to gather for a specific purpose.

Fair Adjustment

An equitable modification or change made to correct or improve a situation, ensuring fairness to all parties involved.