The Central Bank of Country X Buys and Sells Its

question 12

Multiple Choice

The central bank of Country X buys and sells its own currency to ensure that the currency is always exchanged in a ratio of 2:1 with the currency of Country Y. What can we conclude about these two currencies?

• A) Country X is using the Euro.
• B) Country X has pegged its currency to the currency of Country Y.
• C) Country X has an undesirable currency.
• D) Country X allows its currency to float relative to the currency of Country Y.

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Definitions:

North

Generally refers to the northern part of a country or specific region, often associated with specific demographic, economic, or cultural characteristics distinct from the southern part.

West

Generally refers to the direction opposite to east, but in various contexts can denote cultural or geopolitical regions, particularly those considered to be in the western part of a map or globe.

Rosewood

Refers to the Rosewood massacre of 1923, a racially motivated attack on the black community in Rosewood, Florida, leading to numerous deaths and the total destruction of the town.

White Mob

Refers to an unruly group of white individuals, often associated with acts of racial violence or lynching.