Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?

Question

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?

Answer 1

A. buy foreign exchange, sell domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange buy domestic currency
D. sell foreign exchange sell domestic currency

Correct Answer: sell foreign exchange buy domestic currency ✔

Last Updated: June 18, 2019

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?