Question

World Central Banks Act as EU Growth Stalls The European Central Bank (ECB), along with its U.S., Japanese, Swiss, and British counterparts, announce they would inject extra U.S. dollar liquidity into banks facing a shortage of the U.S. dollars. European bank shares have plunged over the past weeks as their usual sources of U.S. dollars have dried up on concerns they might be hit by a Greek debt default, and the announcement sparked a strong bank and general stocks rally. Source: AFP, September 15, 201 How can a group of central banks "inject extra dollar liquidity"? What will such an action do to the quantity of U.S. dollars in Europe? O A. selling securities to banks and accepting payment in U.S. dollars O B printing U.S. dollars O C. raising interest rates D. purchasing securities owned by banks and paying with U.S. dollars Such an action will the quantity of U.S. dollars in Europe. O A. decrease OB. increase OC. not change lielitoolant VOLPwor and then click och Anwo

Answer 1

Such an action will not change the US dollar in europe as the Dollar will only change hands from the central banks to the commercial bank.

The answer is "C", not change.