For a country with a fixed exchange rate, foreign exchange reserves are
A) an asset of the domestic government.
B) dictated by the trade balance.
C) unnecessary.
D) held by private banks.
E) a liability of the domestic government.
Correct Answer:
Verified
Q53: A devaluation of the exchange rate is
Q54: A revaluation of the exchange rate is
Q55: The acquisition of a domestic financial asset
Q56: In the New Keynesian open economy model
Q57: The large exchange rate depreciations which preceded
Q59: A capital outflow occurs when
A)a domestic resident
Q60: According to purchasing power parity, the
Q61: Capital controls refer to
A)government restrictions on the
Q62: The Bretton Woods arrangement
A)fixed the value of
Q63: In an open economy, the law of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents