When Maintaining a Peg, If the Central Bank Runs Out

question 89

Multiple Choice

When maintaining a peg, if the central bank runs out of foreign currency reserves, then:

• A) it can always print more of the domestic currency.
• B) it can back the money supply by purchasing domestic assets.
• C) it can sell its own currency and purchase foreign currency reserves.
• D) it must allow the domestic currency to float.

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Possessing the power to regulate one’s own emotions and to triumph over personal vulnerabilities, while also maintaining the determination to adhere to one’s convictions despite the presence of enticements to relinquish them.

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