To prevent the dollar from depreciating, the U.S. central bank can try to fix the currency value of the dollar when they
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.
Answer: A
You might also like to view...
An economy that does NOT trade with the rest of the world is a(n)
A. open economy B. trade economy C. closed economy D. command economy
The Coase theorem asserts that under certain conditions, the property rights to an activity will be acquired by the party that values it most
Indicate whether the statement is true or false
Only a few countries have followed outward-oriented development strategies for extensive periods of time. Which of the following countries is not one of those that have followed such a strategy successfully in the last decades
A) Russia B) Japan C) South Korea D) Singapore
On June 1, Harding Co. purchased a machine for $14,000 and estimates it will use the machine for five-years with a $2,000 salvage value. Using the straight-line depreciation method, compute the machine's first year (partial) depreciation expense for June 1st through December 31st.