If USMonetary Authorities Want to Strengthen the Dollar, They Will

question 94

Multiple Choice

If U.S.monetary authorities want to strengthen the dollar, they will

• A)sell dollars in the foreign exchange market
• B)buy dollars in the foreign exchange market
• C)declare the dollar devalued
• D)sell dollars and buy only Euros in the foreign exchange market
• E)encourage other central bankers to sell dollars in the foreign exchange market

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Definitions:

Regression Parameters

The coefficients in a regression equation that represent the relationship between independent variables and a dependent variable.

Standard Error Of Estimate

A measure used in statistics to indicate the accuracy of a prediction or how much sample data deviates from the actual population.

T-Test

A type of statistical test that is used to compare the means of two groups to determine if the differences between them are statistically significant.

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables; its value ranges from -1 to 1.