If the demand for foreign exchange is _____ then the government may need to _____ foreign exchange to keep the exchange rate from _____ .
A) increasing, sell, appreciating
B) increasing, sell, depreciating
C) increasing, buy, depreciating
D) decreasing, buy, depreciating
E) decreasing, sell, appreciating

Question

Quizplus · Accepted Answer

When the demand for foreign exchange is increasing, the government may need to sell foreign exchange to prevent the domestic currency from depreciating.

If the Demand for Foreign Exchange Is _____ Then the Government