24. A central bank sale of to purchase in the foreign exchange market results in a rise in its international reserves and the money base. a. foreign assets; domestic currency b. foreign assets; foreign currency c. domestic currency foreign assets d. domestic currency; domestic currency 25. Everything else fundamental remaining unchanged, the monetary approach predicts that a 5 percent cut in the money supply by the Fed will result in: a. inflation in the U.S. economy b. a decrease in the market rate of interest in the U.S. c. an increase in foreign investments by the Americans. d. an appreciation of the U.S. dollar vis--vis other currencies. monetary approach predicts that an increase in the money supply by 12 percent in both China and Thailand will: a. result in an appreciation of the Thai baht against the Yuan. b. result in a depreciation of the Thai baht against the Yuan. c. have no effect on the baht per Yuan exchange rate. d. lower the volume of trade between Thailand and China. 26. The