collpase

  1. B

    Rumor collpase of peso. How to ensure exchange rate remains fixed.?

    Suppose the rumor regarding the collapse of the Mexican peso con tinues. How does the central bank ensure that the exchange rate remains fixed? a. The bank uses its dollar reserves to meet the excess demand for dollars. b. The bank borrows dollars abroad. c. The bank sells pesos d. All of the...
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