Financial troubles in the Eurozone caused a(n) ____________ in the Swiss franc, since it was considered a more stable currency. *

a. expansion

b. contraction

c. depreciation

d. appreciation

A currency that becomes relatively more attractive to investors when other currencies become riskier is known as a: *

a. safe haven currency

b. virtual currency

c. soft currency

d. protected currency

By printing more Swiss francs, the Swiss government was trying to keep: a. inflation from spiraling out of control *

a. inflation from spiraling out of control

b. the value of the franc above the currency peg

c. the value of the franc below the currency peg

d. speculative attacks from occurring

One reason Switzerland wants to maintain its peg is to: *

a. attract more imports from abroad

b. maintain the attractiveness of its exports

c. pursue contractionary fiscal policy

d. penalize foreign investors

Over time, expansionary policy in Switzerland will cause prices to rise. This means the ______________ exchange rate is not actually being pegged. *

a. real

b. nominal

c. buying

d. selling