1. If speculators do attack, the governors stress that the prime responsibility for protecting a currency should lie with the government concerned. 2. Any Federal Reserve increase in its main lending rate would probably prompt similar action by the Bank of Canada to protect the currency. 3. Asian governments are trying to protect their currencies by raising interest rates, measures that could make it more expensive to finance building projects. 4. Asian governments are trying to protect their currencies by raising interest rates, measures that could eventually make it more expensive to finance building projects. 5. A plausible approach is to expand the safety net that protects the currencies of the major industrial powers. 6. A. It protects the currency only if you follow the rules of pushing an economy into deflation if gold is flowing out. 7. Changes in U.S. interest rate policy are closely watched by Canadian investors as the Bank of Canada may be forced to follow to protect the currency. 8. Changes in U.S. interest rate policy are closely watched by Canadian investors because the Bank of Canada may be forced to match increases to protect the currency. 9. Dollar denominated bonds were hardest hit in Asia, where central banks gave up the fight to protect their currencies. 10. Higher interest rates slow economic growth, and protect a currency by attracting investors to fixed-income investments. |