Foreign-exchange markets and buys foreign currencies

Assignment Help Business Economics

Reference no: EM13774263

If a central bank intervenes in the foreign-exchange markets and buys foreign currencies:

A. The domestic money supply increases and foreign currencies appreciate.

B. The domestic money supply decreases and foreign currencies appreciate.

C. The domestic money supply increases and foreign currencies depreciate.

D. The domestic money supply decreases and foreign currencies depreciate.

Reference no: EM13774263

Questions Cloud

A goatherd has the cost function : A goatherd has the cost function c(y) = 2y2, where y is the number of tubs of goat cheese she makes per month. She faces a competitive market for goat cheese,with a price of $40 a tub. How many tubs should she produce per month?

Burning the coke deposited on the catalyst particles : Burning the coke deposited on the catalyst particles generates all the heat necessary for catalytic cracking. Therefore, the coke burning rate is a critical parameter to control the rate of cracking. The composition of dry flue gas from the regenerat..

Suppose that the equilibrium nominal exchange rate : Suppose that the equilibrium nominal exchange rate is 130 Japanese yen to the U.S. dollar. If the Federal Reserve wishes to maintain an exchange rate of 140 Japanese yen to the U.S. dollar, it must meet the private excess ________ dollars in the fore..

Which testing company should be picked if the project manage : A Project Manager wants to pick the most efficient vendor to test a new prototype. He has previous experience with 3 testing companies. Prototype testing is a highly variable activity as shown in the table below. (HINT: For example, Company X complet..

Foreign-exchange markets and buys foreign currencies : If a central bank intervenes in the foreign-exchange markets and buys foreign currencies:

Fixed exchange rate and unrestricted capital flows : Suppose that a country has a fixed exchange rate and unrestricted (financial) capital flows. Which of the following would the country NOT experience?

Makes this event pareto optimal : Harry values a new jacket at $100 and buys it from Jenny at $80 (costing her $70 to produce it). Jim then offers Harry the same jacket at $60. Harry buys the jacket from Jim, and stops buying it from Jenny. Which of the following makes this event Par..

About a lingering recession : In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..

How much interest will be paid over the term of the loan : The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..

User Account

All Pages