Author Question: When foreign investors in Thailand began to realize that Thailand could not maintain its peg to the ... (Read 44 times)

tuffie · **on:** Jun 29, 2018

When foreign investors in Thailand began to realize that Thailand could not maintain its peg to the dollar indefinitely, they began to ________ in Thailand and exchange ________. This change in investment by foreigners is termed capital flight.

A) purchase more investments; dollars for baht to purchase these investments
B) sell off their investments; the dollars they received for baht
C) purchase more investments; baht for dollars to purchase these investments
D) sell off their investments; the baht they received for dollars

Question 2

The Federal Reserve cannot target both the money supply and the interest rate because it does not control

A) bank reserves. B) open market operations.
C) money demand. D) the discount rate.