If the Fed wants to depreciate the U.S. dollar against the British pound, it will
A) sell foreign exchange.
B) decrease the money supply.
C) sell British pounds.
D) sell U.S. dollars.

Question

Quizplus · Accepted Answer

To depreciate the U.S. dollar against the British pound, the Federal Reserve would sell U.S. dollars in the foreign exchange market. This increases the supply of dollars, lowering its value relative to the pound.

If the Fed Wants to Depreciate the U