Question: Question 9: A central bank trying to increase the value of its domestic currency needs to domestic currency in the open market; as a result,

 Question 9: A central bank trying to increase the value of

Question 9: A central bank trying to increase the value of its domestic currency needs to domestic currency in the open market; as a result, the central bank's foreign currency reserves O buy: increase sell; decrease sell:increase O buy; decrease Question 10: Which of the following two statements is correct? S1: Existing foreign direct investment (FDI) in an emerging country benefits from a significant depreciation in the emerging country's currency value. S2: A country's imports are likely to increase when the domestic currency appreciates in value. Both statements are correct OS2 is correct but $1 is false S1 is correct but S2 is false Both statements are false

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