To Prevent the Dollar from Depreciating, the U

question 239

Multiple Choice

To prevent the dollar from depreciating, the U.S. central bank can try to fix the currency value of the dollar when they

• A) buy U.S. dollars in the foreign exchange market.
• B) sell U.S. dollars in the foreign exchange market.
• C) abandon the U.S. dollar and use another country's currency as its legal currency.
• D) buy foreign currencies in the foreign exchange market.