Assume That the Fed Performs a Foreign Exchange Intervention in Which

question 55

Multiple Choice

Assume that the Fed performs a foreign exchange intervention in which it does nothing except buy German government bonds.The dollar will depreciate as a result due to:

• A)A decrease in the demand for dollars, but no change in the supply of dollars
• B)An increase in the supply of dollars, but no change in the demand for dollars
• C)Both a decrease in the demand for dollars and an increase in the supply of dollars
• D)Both an increase in the demand for dollars and a decrease in the supply of dollars

---

Definitions:

Night-blooming

Night-blooming characterizes plants that open their flowers or become active during the night, often for reasons such as attracting specific pollinators or conserving water.

Pollinator

An organism that moves pollen from the male anthers of a flower to the female stigma to achieve fertilization and produce seeds.

Floral Attraction

involves mechanisms or features of flowers that attract pollinators, such as color, scent, or nectar rewards.

Whorls

Arrangements of leaves, petals, or other plant parts that radiate from a single point and surround or wrap around a stem or axis.