If the Federal Reserve Intervenes in the Foreign-Exchange Markets and Buys

question 143

Multiple Choice

If the Federal Reserve intervenes in the foreign-exchange markets and buys foreign currencies

• A)the U.S.money supply rises and foreign currencies depreciate.
• B)the U.S.money supply falls and foreign currencies depreciate.
• C)the U.S.money supply rises and foreign currencies appreciate.
• D)the U.S.money supply falls and foreign currencies appreciate.

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Definitions:

Shares

Shares are portions of equity within a corporation or financial asset, offering a right to proportional dividends when profits are declared.

Dutch Auction

is a bidding strategy where the price of an item is lowered until it gets a bid, the first bid made is the winning offer.

Market Value

The ongoing purchase or sale price of an asset or service.