Under the gold standard, if a country's currency depreciated sufficiently below the fixed conversion rate for gold, then a) gold would flow out of the country. b) gold would flow into the country. c) the central bank would have to buy gold. d) the central bank would have to sell gold. A major advantage of a specie standard as an exchange rate regime is a) discretionary monetary policy is effective. b) the currency is guaranteed to appreciate. c) exchange rates are stable. d) none of the above. A major advantage of a free floating exchange rate regime is a) discretionary monetary policy is effective. b) foreign purchases of domestic industries is restricted. c) the future value of a currency docs not depend on policy decisions. d) none of the above. Some developing countries adopted a managed float instead of a free float because a) a managed float docs not require that they hold foreign reserves. b) exchange rates arc less volatile under a managed float. c) there arc restrictions on capital mobility under a free float. d) none of the above. The balance sheet below shows the changes resulting from a central bank intervention in the foreign exchange market. The change was a(n)____ purchase so that the currency would a) sterilized, appreciate. b) sterilized, depreciate. c) unsterilized, appreciate d) none of the above. A disadvantage for China of keeping its currency pegged at a relatively weak level is a) the price of their imports is high. b) they must hold low yielding foreign bonds. c) foreign domestic investment is limited. d) all of the above. The Fed buys $20,000 in foreign reserves. This intervention is sterilized if they also a) sell $20,000 in U.S. bonds. b) buy $20,000 in U.S. bonds