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
investments.
D: intervene in the foreign exchange market to sell foreign currency and
buy domestic currency.
举一反三
- When<br/>the central bank allows the purchase or sale of domestic currency to<br/>have an effect on the monetary base, it is called A: an<br/>unsterilized foreign exchange intervention. B: a<br/>sterilized foreign exchange intervention. C: an<br/>exchange rate feedback rule. D: a<br/>money neutral foreign exchange intervention
- 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
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.
- 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
- The measures that can be taken to reduce the current account deficit or improve the current account balance are ( ). A: Reducing consumption or investment expenditure B: Depreciation of the local currency exchange rate C: Cutting government expenditure D: Appreciation of the exchange rate of the local currency
内容
- 0
Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. If the British government uses sterilized intervention in the foreign exchange market, then:
- 1
Which of the following statements is NOT accurate? ____. A: A fundamental disequilibrium can result in a one-way speculative<br/>gamble. B: An ongoing disequilibrium in the foreign exchange market can be<br/>sterilized by keeping official reserve holdings steady. C: Fundamental disequilibrium calls for a persistent series of official<br/>interventions. D: The value of the foreign currency declines if a country revalues its<br/>own currency.
- 2
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:
- 3
The government sells US dollars for domestic currency in foreign market to prevent its currency devaluation. This activity is known as（） A: financing policy B: expenditure change policy C: fiscal policy D: monetary policy
- 4
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.