Home › Bihar Board Class 12 (Arts) › Economics › Open Economy Macroeconomics › Aggressive buying of a currency that forces the …
Aggressive buying of a currency that forces the government to devalue is a
ATrade tariff
BQuota regime
CSpeculative attack
DCurrency swap
Answer & Solution
Correct answer: C. Speculative attack
Traders betting on devaluation can force it by selling reserves dry, a speculative attack.
Related questions
Which of these is part of the current account as per the BoP definition?If outflows exceed inflows, all else equal, a currency is likely to come under pressure toAfter Bretton Woods, the principal de facto reserve currency has been theA stronger currency tends to make a nation's exportsWho developed the theory of comparative advantage?Which 1997 event led emerging economies to rethink reliance on free markets?A BoP crisis occurs when a nation cannot pay forThe Bretton Woods system came to an end between which years?