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If a Country Wants to Keep a Foreign Currency Overvalued

Question 69

Multiple Choice

If a country wants to keep a foreign currency overvalued against its domestic currency,________.


A) it will buy both the foreign and the domestic currency
B) it will sell both the foreign and the domestic currency
C) it will buy the domestic currency and sell the foreign currency
D) it will buy the foreign currency and sell the domestic currency

Correct Answer:

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