A Country Wants to Maintain a Fixed Exchange Rate with the Canadian

question 185

Multiple Choice

A country wants to maintain a fixed exchange rate with the Canadian dollar,but at the current exchange rate,its currency is in excess.Which policy can the country NOT adopt to maintain its exchange rate?

• A) Buy domestic currency and sell Canadian dollars in the foreign exchange market.
• B) Sell domestic currency and buy Canadian dollars in the foreign exchange market.
• C) Impose foreign exchange controls.
• D) Contract the money supply to raise domestic interest rates.

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Definitions:

Decentralized Communication Network

A network structure where communication occurs freely between individuals without a central control.

Complex Tasks

Tasks that involve multiple, often interconnected steps, requiring a high level of skill, knowledge, and coordination to complete.

Intense Interaction

A situation involving deep or meaningful communication or engagement between individuals, often requiring high levels of attention and emotional involvement.

Group Decision Making

The process of making choices or decisions within a group setting, often involving discussion, debate, and consensus-building.