A Fixed Exchange Rate Is Enforced By

question 7

Multiple Choice

A fixed exchange rate is enforced by:

• A)national governments,who establish appropriate trade barriers for each country they trade with.
• B)national governments,who manipulate gold reserves appropriately.
• C)central banks,who buy and sell appropriate currencies.
• D)the International Monetary Fund,which offers loans to its member countries.
• E)local governments,who manipulate capital reserves appropriately.

---

Definitions:

Foreign Investment

Investment in domestic companies and assets of another country by a foreign investor, aiming to gain returns.

Circle

A simple closed shape consisting of all points in a plane that are a given distance from a given point, the centre.