Multiple Choice
Countries accumulate foreign currency reserves for all of the following reasons, EXCEPT:
A) to achieve a higher backing ratio.
B) to safeguard against future shortfalls in foreign capital.
C) to safeguard against a domestic banking crisis.
D) to improve the stature of the country in the WTO.
Correct Answer:

Verified
Correct Answer:
Verified
Q86: If a nation's interest rate on foreign
Q87: Aruba pegs its currency (the Aruban florin)
Q88: In general, when market expectations indicate a
Q89: When maintaining a peg, if the central
Q90: The reason for the concurrence of exchange
Q92: (Table: Mexico's Central Bank Balance Sheet) To
Q93: A balance sheet for the central bank
Q94: Aruba pegs its currency (the Aruban florin)
Q95: A ratio indicating how safe the peg
Q96: What results in changes in the domestic