A currency depreciation on the foreign exchange market will ______、
举一反三
- 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
- Over time, a depreciation in the value of a nation’s currency in the foreign exchange market will result in: A: Exports rising and imports falling B: Imports rising and exports falling C: Both imports and exports rising D: Both imports and exports falling
- 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
- A common method for preventing foreign exchange risks is ( ) A: the foreign exchange risk management strategy B: currency preservation clauses C: the method of currency selection D: the method of foreign exchange transactions
- Foreign exchange is best defined as the risk that A: the value of an obligation will change because of a change in foreign exchange risk. B: the value of an asset will become trapped by an inability to exchange foreign currencies. C: a foreign government may be overthrown freezing any assets held in that country. D: a foreign currency market might collapse.