Epsilon is a country whose unit of currency is the omega. New information leads people to expect that the omega will appreciate next year. To keep the foreign exchange value of the omega fairly steady, the Bank of Epsilon will __________enough omegas on the foreign exchange market so that the __________omegas will__________ .

Question

Quizplus · Accepted Answer

To prevent the omega from appreciating, the Bank of Epsilon would sell omegas, increasing the supply and thus counteracting the upward pressure on its value.

Epsilon Is a Country Whose Unit of Currency Is the Omega