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You have been assigned the role to Advise the FEDERAL RESERVE on how to BEST manage the Exchange Rate. Write a detailed note explaining to

You have been assigned the role to Advise the FEDERAL RESERVE on how to BEST manage the Exchange Rate.

Write a detailed note explaining to the Governor what tools are available and what would be your strategy in defending the currency against speculative market forces?

Answer : Defending the exchange rate of a currency is a complex business

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