Fixed exchange rates are often maintained by using all of the following tools except
A)open speculation by individual traders in foreign currency markets.
B)international monetary reserves held by central banks.
C)controls on imports and exports, such as tariffs and quotas.
D)domestic macroeconomic adjustments using monetary and fiscal policies.

Question

Quizplus · Accepted Answer

Open speculation by individual traders in foreign currency markets is not a tool used by governments or central banks to maintain fixed exchange rates. Instead, it's an activity that occurs in the market independently of policy actions. Governments and central banks use reserves, trade controls, and policy adjustments to influence exchange rates.

Fixed Exchange Rates Are Often Maintained by Using All of the Following