Fixed Exchange Rates Are Often Maintained by Using All of the Following

question 70

Multiple Choice

Fixed exchange rates are often maintained by using all of the following except:

• A) Open speculation by individual traders in foreign currency markets
• B) International monetary reserves held by central banks
• C) Controls on imports and exports such as tariffs and quotas
• D) Domestic macroeconomic adjustments using monetary and fiscal policies

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Definitions:

Brake Boosters

Devices that use vacuum or hydraulic pressure to increase the force applied to the vehicle's brakes, reducing the effort needed by the driver.

Dedicated Hydraulic Pump

A hydraulic pump assigned to perform a specific task or operate a particular component in a hydraulic system, ensuring the needed hydraulic fluid flow.

Hygroscopic

Capable of absorbing moisture; a characteristic of some brake fluids. This is an advantage for hydraulic brake fluid because it inhibits water droplets that can cause corrosion, freeze, or boil.

Bleeding Operations

The process of removing air bubbles from hydraulic systems to ensure efficient operation.