Under the direct quotation, the value of the exchange rate of the domestic currency against a foreign currency becomes larger and smaller, which means the domestic currency()respectively
A. depreciation, appreciation
B. appreciation, depreciation
C. no relation
D. not sure
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The theory that the rise of domestic interest rate will cause the devaluation of local currency is()
A. theory of purchasing power parity
B. psychological theory of exchange
C. monetary approach
D. elasticity approach
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
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