To Prevent the Dollar from Depreciating, the U

question 272

Multiple Choice

To prevent the dollar from depreciating, the U.S. central bank that tries to fix the currency value of the dollar can

• 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.

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Definitions:

Bank Charges

Fees charged by banks for various services and transactions, such as account maintenance, transfers, and non-sufficient funds.

Bank Reconciliation

The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Phishing

Fake e-mails that attempt to obtain information about online banking customers.

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.