Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the exchange rate of the domestic currency?
A: Exchange controls
B: Capital controls
C: Official intervention
D: Adjustable peg
A: Exchange controls
B: Capital controls
C: Official intervention
D: Adjustable peg
举一反三
- In order to maintain exchange rate stability, central banks often intervene in the foreign exchange market by buying and selling foreign exchange. When the local currency exchange rate (), they sell foreign exchange and withdraw local currency. A: depreciates B: appreciates C: is fixed D: none of the above
- Following an expansion of the money supply, a government committed to<br/>maintaining a fixed exchange rate must ____. A: accept a surplus in its current account. B: not use sterilized intervention. C: increase its level of government expenditure and autonomous<br/>investments. D: intervene in the foreign exchange market to sell foreign currency and<br/>buy domestic currency.
- The AA schedule shows________. ( ) A: Exchange rate and output pairs at which only the foreign exchange market is in equilibrium. B: Interest rate and output pairs at which only the foreign exchange market is in equilibrium. C: Interest rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium. D: Exchange rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.
- The foreign exchange rate is the price of A: capital B: products C: foreign currency D: investment
- 7. If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange rate value of the domestic currency: