A foreign exchange intervention by a central bank affects the value of a country's currency if it:
A. results in a fixed exchange rate.
B. leaves domestic interest rates unchanged.
C. alters banking system reserves and it changes domestic interest rates.
D. alters banking system reserves.
Answer: C
You might also like to view...
The graph below represents the market for walnuts. Identify the values of the marginal benefit and the marginal cost at the output levels of 2,000 pounds, 4,000 pounds, and 6,000 pounds
At each of these output levels, state whether output is inefficiently high, inefficiently low, or economically efficient.
A Dutch auction is a(n) ________-bid auction in which participants ________ observe each participant's bids.
A) descending; do not B) ascending; do not C) descending; do D) ascending; do
What is most accurate about the United States' trading patterns between 1850 and 1900?
a. The US exported more finished manufacturers in 1850 than it did in 1900. b. Raw materials accounted for a greater share of US imports in 1850 than they did in 1900. c. Manufactured and raw foodstuffs accounted for about 75% of exports in both 1850 and 1900. d. In 1850, the US's largest export was raw materials and its larges import was finished manufacturers.
Refer to Figure a. Charlie and Joe both want to ride shotgun with their mother, so they play a game of rock-paper-scissors to determine who gets to sit in the front seat. If -1 represents a loss, 1 a win and 0 a tie, and Joe's payoff is shown in the upper left-hand corner of each cell, while Charlie's appears in the lower right-hand corner, which set of rules is illustrated in the following payoff matrix?
A. Rock tears paper, paper covers scissors, scissors clip rock
B. Rock crushes scissors, scissors cuts paper, paper covers rock
C. Rock crushes scissors, scissors cuts paper, scissors clip rock
D. Rock tears paper, paper covers scissors, paper covers rock