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Stolb23 [73]
3 years ago
15

easynotrcards Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the cen

tral bank must intervene to sell the ________ currency by purchasing ________ assets. Question 2 options: A) foreign; foreign B) domestic; domestic C) domestic; foreign D) foreign; domestic
Business
2 answers:
Alina [70]3 years ago
7 0

Answer:

D) foreign; domestic

Explanation:

The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.

Vikentia [17]3 years ago
6 0

Answer:

D) foreign; domestic

Explanation:

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency.

To increase the value of their currency, countries could try several policies.

  • Sell foreign exchange assets, purchase own currency
  • Raise interest rates (attract hot money flows
  • Reduce inflation (make exports more competitive
  • Supply-side policies to increase long-term competitiveness.

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xenn [34]

Answer:

The correct answer is letter "D": short-term financing.

Explanation:

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2 years ago
The diagram shows an aspect of fiscal policy.
storchak [24]

Answer

C. The government spending to strengthen the economy

Explanation

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6 0
3 years ago
Read 2 more answers
Victor Green has been working at The Bicycle Superstore for about two weeks.This morning he noticed that the store's inventory o
geniusboy [140]

Answer:

The correct option is A.

Explanation:

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In the scenario presented above, Victor Green clearly does not know the chain of command, therefore, he does not know who to report to or seek permission from in order to make a business decision.

5 0
2 years ago
4. Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of
ololo11 [35]
I think the answer is 36% sorry if I'm wrong!

5 0
3 years ago
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The numerator in the quick ratio includes all of the following except a.Temporary Investments. b.Accounts Receivable. c.Inventor
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Answer:

c. Inventory.

Explanation:

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2 years ago
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