Refer to Figure 20.5 for the following questions.
Figure 20.5
-If the Thai government wants to maintain an exchange rate of 0.04 baht per US dollar,as illustrated in Figure 20.5,then it must
A) purchase 100 million baht per day with US dollars.
B) purchase 50 million baht per day with US dollars.
C) sell 100 million baht per day in exchange for US dollars.
D) sell 50 million baht per day in exchange for US dollars.

Question

Refer to Figure 20.5 for the following questions.
Figure 20.5 
-If the Thai government wants to maintain an exchange rate of 0.04 baht per US dollar,as illustrated in Figure 20.5,then it must
A) purchase 100 million baht per day with US dollars. 
B) purchase 50 million baht per day with US dollars. 
C) sell 100 million baht per day in exchange for US dollars. 
D) sell 50 million baht per day in exchange for US dollars.

Quizplus · Accepted Answer

The Answer of Refer to Figure 20.5 for the following questions.
Figure 20.5 
-If the Thai government wants to maintain an exchange rate of 0.04 baht per US dollar,as illustrated in Figure 20.5,then it must
A) purchase 100 million baht per day with US dollars. 
B) purchase 50 million baht per day with US dollars. 
C) sell 100 million baht per day in exchange for US dollars. 
D) sell 50 million baht per day in exchange for US dollars.

Refer to Figure 20.5 for the Following Questions