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With Fixed Exchange Rates, the Imbalance Between Debits and Credits

Question 130

Multiple Choice

With fixed exchange rates, the imbalance between debits and credits arising from shifts in currency demand and/or supply:


A) ​is accommodated by the market mechanism.
B) ​is accommodated by financial borrowings.
C) ​is accommodated by reserve movements.
D) ​either (b) or (c)

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