If the Fed thinks the dollar's value is ________ and a foreign currency's is too low, it can purchase some of the foreign currency with its own supply of dollars.

Question

Quizplus · Accepted Answer

If the Fed thinks the dollar's value is too high and a foreign currency's is too low, it can purchase some of the foreign currency with its own supply of dollars. This would help to weaken the dollar relative to the foreign currency and make the foreign currency stronger.

If the Fed Thinks the Dollar's Value Is ________ and a Foreign