With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

All of the following are benefits of the single market except ?

A. it allows countries to exploit their comparative advantage, more fully

B. firm could more readily exploit

C. economies of scal

D. it intensified competition

E. it is easier to book holidays in member countries

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

A. a nominal exchange rate, floated

B. a real exchange rate, pegged

C. a purchasing power parity, pegged

D. a real exchange rate, floated

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

A. appreciate

B. depreciate

C. revalue

D. be in short supply

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A. depreciation

B. appreciation

C. fall

D. devaluation

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

A. enhances

B. undermines

C. encourages

D. facilitates