Author Question: When the demand for a currency permanently increases, that nation's central bank can maintain its ... (Read 83 times)

SGallaher96 · **on:** Jun 29, 2018

When the demand for a currency permanently increases, that nation's central bank can maintain its fixed exchange rate indefinitely.

Indicate whether the statement is true or false

Question 2

Because monetary policy must be approved by the president of the United States, the president is chair of the Federal Open Market Committee. Analyze the previous statementis it correct or incorrect?

What will be an ideal response?

SomethingSomething · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

TRUE

Answer to Question 2

The statement is incorrect on several dimensions. First, monetary policy does not need to be approved by the President of the United States. Second, the president of the United States is not chair of the Federal Open Market Committee, FOMC. Third, the president of the United States is not even a member of the FOMC The chair of the FOMC is the chair of the Federal Reserve's Board of Governors.