Author Question: SOEs refer to China's rapidly growing service sector a. True b. ... (Read 124 times)

chads108 · **on:** Jun 30, 2018

SOEs refer to China's rapidly growing service sector
a. True
b. False

Question 2

Assume the exchange rate of the domestic currency is overvalued. What does the central bank need to do in order to keep the exchange rate fixed?
a. There is no need to intervene since the domestic currency is not undervalued.
b. It needs to increase the money supply by raising the discount rate.
c. It needs to sell the excess demand for foreign currency.
d. It needs to buy the excess supply of foreign currency.
e. It needs to decrease the money supply by lowering the discount rate.