If a Central Bank Wants to Keep the Value of Its

question 97

Multiple Choice

If a central bank wants to keep the value of its home currency fixed in the foreign exchange market, then an increase in the demand for its home currency will lead the central bank to

• A) do nothing.
• B) sell its home currency.
• C) buy its home currency.
• D) sell foreign currencies.

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Definitions:

Less Than Truckload

A shipping method for transporting small freight loads that do not require the full space of a truck.

Demand Information

Data regarding current and future customer demand that is used for planning and optimizing supply chain activities.

Incentive Obstacles

Factors that hinder the effectiveness or implementation of incentive programs designed to motivate specific behaviors or outcomes.

Information Processing Obstacle

Challenges faced in capturing, processing, storing, and disseminating information that can impede efficient decision-making and operations in an organization.