Under a fixed exchange rate system, central banks ________ meet the demand for their domestic currency and ________ meet the demand for foreign currencies

A) can always; can always
B) can always; are limited in their ability to
C) are limited in their ability to; are limited in their ability to
D) are limited in their ability to; can never


B

Economics

You might also like to view...

Refer to the figure below. Let ?X denote the price elasticity of demand at point X. Which of the following describes the relationship between ?A, ?B and ?C?

A. ?A > ?B > ?C B. ?A > ?C > ?B C. ?B > ?C > ?A D. ?C > ?B > ?A

Economics

Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV) calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.082 × Q) - $200,000, where Q is the annual quantity of the input the firm needs. If the firm needs 175,000 units of the input each year, the

manager ________ buy the equipment because the NPV is ________. A) should; positive B) should not; negative C) should; negative D) should not; positive

Economics

The theory of comparative advantage suggests that nations should produce a good if they

a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.

Economics

The money supply in Econland is 1,000, and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Bank reserves equal ________.

A. 800 B. 500 C. 200 D. 250

Economics