Under a Fixed Exchange Rate System,if an Appreciation in the Value

question 47

Multiple Choice

Under a fixed exchange rate system,if an appreciation in the value of a country's currency develops,the monetary authorities ________.

• A)will gain international reserves
• B)buy the domestic currency in foreign exchange markets
• C)sell foreign exchange in foreign exchange markets
• D)will lose international reserves

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Definitions:

Subject

The part of a sentence that indicates what the sentence is about, usually performing the action or being in the state described by the predicate.

Appeal to Authority

A logical fallacy where an argument is made based on the authority of a person or entity, rather than on evidence or reasoning.

Harvard Professor of History

A faculty member specializing in history at Harvard University, which is often indicative of a high level of authority and expertise in the field.

Bridge

A structure constructed to span a physical obstacle, such as a body of water, valley, or road, without blocking the way underneath.