To Offset an Increased Demand for Its Currency, a Government

question 39

Multiple Choice

To offset an increased demand for its currency, a government fixing its exchange rate

• A)must sell gold or some other precious metal.
• B)must increase the supply of the foreign currency.
• C)must increase the supply of its currency.
• D)must make it illegal to sell its currency.

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Definitions:

Amount of Checks

The total monetary value represented by checks issued or received by an individual or business.

Uncollectible Account

A receivable that is considered uncollectible from a debtor, usually leading to it being written off as a bad debt expense.

Accounts Receivable

Amounts due from customers to a business for products or services already received but not paid for.

Treasury Stock

Shares that were once in circulation and have been bought back by the issuing company, reducing the amount of outstanding stock.