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  4. Quiz 21: The International Financial System

The German Central Bank Gained International Reserves in the Early

Question 104
Multiple Choice

The German central bank gained international reserves in the early 1970s because it sold ________ to prevent mark ________. A) marks; appreciation B) dollars; appreciation C) marks; depreciation D) dollars; depreciation

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Q 105
Since the abandonment of the Bretton Woods system, balance of payments considerations have become ________ important, and exchange rate considerations ________ important in the conduct of monetary policy. A) more; less B) more; more C) less; less D) less; more
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Q 107
If a central bank does not want to see its currency ________ in value, it may pursue contractionary monetary policy to raise the domestic interest rate, thereby ________ its currency. A) fall; strengthening B) fall; weakening C) rise; strengthening D) rise; weakening
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