In order to maintain exchange rate stability, central banks often intervene in the foreign exchange market by buying and selling foreign exchange. When the local currency exchange rate（）, they sell fo
A. depreciates
B. appreciates
C. is fixed
D. none of the above
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The main purpose of imposing controls on foreign exchange transactions is generally to（）
A. balance international payments, stabilize exchange rate
B. restrict loans
C. restrict the illegal trade
D. prevent capital inflows
The monetary approach of exchange rate believes that（）
A. the relative supply and demand of currencies between two countries affect the exchange rate
B. only the interest rate of the country affects the exchange rate
C. only one country’s total output affects the exchange rate
D. it is mainly the expectation factor that influences the exchange rate
The middle rate is the arithmetic average of which two of the following exchange rates（）
A. buying and selling exchange rates
B. spot and forward exchange rates
C. official exchange rate and market exchange rate
D. opening and closing exchange rates
Foreign exchange banks buy foreign banknotes at a price that is（）than the spot selling price
A. cheaper
B. a few more expensive
C. the same
D. equal to the exchange rate
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