asked 11.4k views
3 votes
Under a fixed exchange rate regime, when the domestic currency is overvalued, the central bank must _________ the domestic currency to keep the exchange rate fixed and as a result it _________ international reserves. purchase; loses sell; loses purchase; gains sell; gains

1 Answer

3 votes
...the central bank must purchase the domestic currency... as a result it gains international reserves.
answered
User Lashone
by
8.4k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.