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lexible exchange rates, the central bank of
Advocates of flexible exchange rates claim that under flexible exchange rates, the central bank ofA.an overheated economy could cool down activity by increasing the money supply wi...
cyxssbthe central bank gives up its ability to
By fixing the exchange rate, the central bank gives up its ability toA.adjustB.increase governmentC.influence the economy through fiscalD.depreciate the domesticE.influence the eco...
cyxssbA central bank’s international reserves include
A.any gold that itB.any silver that itC.any gold that it owns and foreign and domesticD.any silver that it owns and foreign and domesticE.only foreign and domestic assets.Answer: C
cyxssbThe liabilities side of a central bank include
A.deposits held by the privateB.currency inC.deposits held by the private banks and currency inD.deposits held by the private banks and currency inE.deposits held by the private ba...
cyxssbWhich one of the following statements is most true?
A.Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets automatically causes the money supply...
cyxssbWhich one of the following statements is most true?
A.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank’s claims on the home country impli...
cyxssbWhich one of the following statements is the most accurate?
A.A devaluation occurs when the central bank lowers the domestic currency price of foreign currency, E, and a revaluation occurs when the central bank raisesB.A devaluation occurs ...
cyxssbHow A Central Bank Fixes the Exchange Rate?
Answer:The Central bank must always be willing to trade currencies at the fixed exchange rate with the private actors in the foreign exchange market to hold exchange rate constant....
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