Where would a country such as Japan get U.S.dollars in order to engage in managed float?
A) It would print them.
B) It would use its reserve of dollars.
C) It would sell yen on the open market in exchange for U.S.dollars.
D) Since Japan's currency is the yen,it would not be able to obtain U.S.dollars.
E) It would borrow U.S.dollars form the U.S.

Question

Quizplus · Accepted Answer

Japan would use its reserves of U.S. dollars to engage in managed float. As a major exporter, Japan earns U.S. dollars through exports and can use these dollars to build up its reserves. This would allow Japan's central bank to influence the exchange rate by buying or selling Yen in the currency market.

Where Would a Country Such as Japan Get U