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

question 39

Multiple Choice

Under a fixed exchange rate regime,if the domestic currency is initially undervalued,that is,above par,the central bank must intervene to sell the ________ currency by purchasing ________ assets.

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

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Definitions:

Routine Request

A standard or regular petition for information, services, or action within established practices or procedures.

Prospective Employer

An employer with whom a job seeker is considering a future working relationship, often during the application or interview stage.

Verify Your Response

The act of checking the accuracy or truthfulness of your statements or information provided.

Presume Agreement

A persuasion technique assuming the audience agrees with the statement being made to encourage actual agreement.