If the Fed wants to depreciate the U.S. dollar against the British pound, it will .

Question

Quizplus · Accepted Answer

If the Fed wants to depreciate the U.S. dollar against the British pound, it needs to increase the supply of British pounds in the foreign exchange market. This can be done by selling U.S. dollars and buying British pounds, which increases the supply of U.S. dollars and decreases the supply of British pounds, thus weakening the dollar and strengthening the pound.

If the Fed Wants to Depreciate the U