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24. A Country's central bank will hold foreign reserves in order to protect against unexpected changes in the

exchange rate.

True / False


25. Consider the USD / JPY exchange rate. When the Exchange rate moves from 106.7 yen per dollar to 109.8 yen per dollar, then the yen has appreciated.

True / False


26. Currency X is traded freely in currency markets. Short run fluctuations in the exchange rate are mainly due to differences in the inflation rate between the two countries.

Top Answer

Question 24 The correct answer is True The central bank has foreign reserves to shield the economy from... View the full answer

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