A Depreciation of a Currency Below the Exchange Rate Fixed

question 411

Multiple Choice

A depreciation of a currency below the exchange rate fixed by its government can be countered by all of the following measures EXCEPT by:

• A)decreasing capital flows out of the country.
• B)limiting the domestic purchase of foreign financial assets.
• C)decreasing capital flows into the country.
• D)decreasing foreign exchange reserves.

---

Definitions:

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups or cultures.

Selective Listening

Paying attention only to information that confirms one's preconceptions, ignoring or dismissing differing viewpoints.

Subconscious Mind

The part of the mind of which one is not fully aware but which influences one's actions and feelings.

Selective Listening

A listening technique where the listener focuses on certain parts of the conversation while ignoring others, often based on bias or preconception.