If the Central Bank's Goal Was to Decrease the Value

question 48

Multiple Choice

If the Central Bank's goal was to decrease the value of its currency, or to fight an appreciation of its currency's value on the foreign exchange market, the bank could

• A) buy its own currency with foreign currency.
• B) sell its own currency in exchange for foreign currency.
• C) sell foreign currency.
• D) do all of the above

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