You are watching: Which one of the following statements is the most accurate?
Any central bank acquisition of assets immediately results in an increase in the residential money supply, if any central bank revenue of assets instantly causes the money supply to decline.
If main banks are not sterilizing and the home nation has a balance of payments surplus, any kind of associated increase in the home central bank\"s foreign asset implies an increased house money supply.
If main banks space not sterilizing and the home country has a balance of payments surplus, any type of associated decrease in a foreign main bank\"s insurance claims on the home country implies a diminished foreign money supply.
a system in which governments may attempt to center exchange rate movements without maintaining exchange rates rigidly fixed
Under a resolved exchange rate, main bank financial tools space powerless to influence the economy\"s money supply or that output
What is the intended dollar rate of return on disagreement deposits if today\"s exchange price is $1.10 per euro, next year\"s intended exchange price is $1.165 per euro, the disagreement interest rate is 10%, and the euro interest rate is 5%?
A devaluation occurs when the main bank raises the domestic currency price of foreign currency, E, and a revaluation occurs as soon as the central bank lowers E.
Depreciation is a climb in E once the exchange rate floats when devaluation is a climb in E when the exchange price is fixed
Appreciation is a loss in E as soon as the exchange rate floats if revaluation is a loss in E as soon as the exchange price is fixed.
Devaluation reflects a deliberate federal government decision if depreciation is an end result of federal government actions and also market pressures acting together.
Revaluation shows a deliberate federal government decision while appreciation is result of federal government actions and market forces acting together.
Devaluation causes a climb in output, a rise in official reserves, and an expansion of the money supply.
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a sharp adjust in foreign reserves sparked by a readjust in expectations about the future exchange rate
speculative assaults on the currency or central banks purchase excessive quantities of government bonds.
Which that the following best describes a deliberate federal government decision to lower the exchange rate, E?