For a country with a fixed exchange rate, foreign exchange ...

[@Brianna17]

For a country with a fixed exchange rate, foreign exchange reserves are
 
  A) an asset of the domestic government.
  B) a liability of the domestic government.
  C) held by private banks.
  D) are unnecessary.

Question 2

Financial institutions that cut back on their lending are engaged in ________.
 
  A) liability management
  B) deleveraging
  C) financial innovation
  D) torsion control

[bdobbins]

Answer to Question 1

A

Answer to Question 2

B

[@Brianna17]

Thanks for the timely response, appreciate it

[mjenn52]

Excellent