To Prop Up a Currency, a Country Must

question 48

Multiple Choice

To prop up a currency, a country must

• A)reduce its interest rates.
• B)limit the movement of capital.
• C)use its reserves to purchase its own currency in the foreign-exchange market.
• D)sell its gold stock.

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Definitions:

Ostrogothic Patron

A leader or influential figure of the Ostrogoths, a Germanic people, who supported the arts and architecture during their ruling period in Italy.

Theodoric

King of the Ostrogoths (475-526 AD), his rule marked a period of stability and cultural achievement in the late Roman Empire.

Justinian

Byzantine Emperor from 527 to 565 CE, known for his comprehensive codification of Roman law, the Justinian Code.

Dominant Strategy

A strategy that is best for a player in a game, regardless of the strategies chosen by other players.