If the Australian central bank wished to cause the AUD to appreciate,it would _______ AUD and _______ foreign currency.
A) buy; sell
B) sell; sell
C) sell; buy
D) buy; buy

Question

Quizplus · Accepted Answer

By buying AUD and selling foreign currency, the Australian central bank increases demand for AUD while simultaneously increasing the supply of foreign currency in the market, which leads to an appreciation of the AUD.

If the Australian Central Bank Wished to Cause the AUD