A country with an overvalued currency
A. will have a balance of payments deficit.
B. will suffer losses of foreign reserves.
C. must intervene in the foreign-exchange market to buy its own currency.
D. All of the above are correct.
Answer: D
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If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease. B) deposits at banks increase and banks' reserves increase. C) deposits at banks increase and banks' reserves decrease. D) loans at banks decrease. E) deposits at banks decrease and banks' reserves increase.
An increase in the interest rate would result in a(n)
a. shift to the left in the demand curve for loanable funds b. shift to right in the supply curve of loanable funds c. decrease in the quantity demanded of loanable funds d. increase in the present value of assets e. decrease in the quantity supplied of loanable funds
As a general rule, consumers have
a. limited income. b. unlimited desires for goods. c. many choices of goods facing them. d. All of the above are correct. e. None of the above are correct.
________ is (are) an example of selling externality rights.
A. Direct subsidies for positive externalities B. Government imposed taxes C. Auctioning the right have a garage sale each year D. Having the damaged party avoid the damage