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Author Question: Suppose the current exchange rate between the Chinese yuan and the United States dollar is 7 yuan ... (Read 212 times)

lak

  • Hero Member
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  • Posts: 546
on: Jun 29, 2018
Suppose the current exchange rate between the Chinese yuan and the United States dollar is 7 yuan per dollar. If the Fed sought to drive up the exchange rate to 8 yuan per dollar then it would
 
  A) buy dollars.
  B) sell dollars.
  C) buy yuan.
  D) sell dollars and buy yuan.

Question 2

If the Fed buys 100,000 in U.S. government securities from a commercial bank, the bank now has an additional 100,000 of
 
  A) total assets.
  B) excess reserves.
  C) actual reserves.
  D) net worth.


dominiqueenicolee

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


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