Multiple Choice
Under the IMF fixed exchange rate system, a nation running a balance of payments deficit would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency to maintain the fixed exchange rate.
A) supply of; buy
B) supply of; sell
C) demand for; buy
D) demand for; sell
Correct Answer:
Verified
Correct Answer:
Verified
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