If the British government intends to raise the value of the British pound, it should
A)sell pounds in the foreign exchange markets.
B)buy pounds in the foreign exchange markets.
C)buy pounds in one foreign exchange market and then sell those pounds in another foreign exchange market.
D)buy foreign currencies, such as the euro, in the foreign exchange markets.
E)lower the British interest rates.

Question

Quizplus · Accepted Answer

If the British government buys pounds in the foreign exchange markets, it will increase demand for the currency and therefore increase its value.

If the British Government Intends to Raise the Value of the British