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please answer these four tf questions, thanks I am the central bank of A. I want to raise the value of my currency compared to
please answer these four tf questions, thanks
- I am the central bank of A. I want to raise the value of my currency compared to the currency of B. In order to do that, I should buy the currency of B.
- I am the central bank of A. I want to keep my exchange rate with B fixed. If something happens that means people would not want my currency. I would have to buy B currency to keep the exchange rate fixed.
- I am the central bank of A. I want to keep my exchange rate with B fixed. If something happens that means people would not want my currency. I would have to decrease my reserves of B currency to keep the exchange rate fixed.
- I am the central bank of A. I want to keep my exchange rate with B fixed. If something happens that means people would not want my currency. I would eventually have no choice but to devalue my currency, close my borders to international markets, or beg the IMF for a loan.
These are all TF questions
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