Domestic currency in exchange for foreign currency

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Reference no: EM131558470

If the goal were to decrease the value of a country's currency - to fight an appreciation of the domestic currency in exchange for foreign currency - the central bank would:

A) buy its own currency in exchange for foreign currency.

B) follow a restrictive monetary policy.

C) drive real rates of interest up.

D) sell its own currency in exchange for foreign currency.

E) none of the above.

Reference no: EM131558470

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