Other things equal, to keep the pound's exchange value from depreciating against the Swiss franc the British exchange stabilization fund would sell pounds for Swiss francs on the foreign exchange market.

Question

Quizplus · Accepted Answer

To keep the pound's exchange value from depreciating against the Swiss franc, the British exchange stabilization fund would buy pounds with Swiss francs on the foreign exchange market, not sell them. This action would increase demand for the pound, supporting its value.

Other Things Equal, to Keep the Pound's Exchange Value from Depreciating