An effective way for a country to keep its currency fixed at a desirable level is to:
A)use traditional monetary, fiscal, and trade policies.
B)demand changes in monetary and fiscal policies of its trade partners.
C)demand changes in trade policy to its trade partners.
D)use internationalization of the debt.

Question

Quizplus · Accepted Answer

Traditional monetary, fiscal, and trade policies allow a country to influence its currency value by affecting the supply and demand for the currency, interest rates, and economic growth. These tools can help maintain a currency at a fixed or desirable level by adjusting economic variables that influence currency strength.

An Effective Way for a Country to Keep Its Currency