To appreciate the U.S. dollar against the Mexican​ peso, in the foreign exchange market the Fed could​ ________ dollars and​ ________ pesos.

A.​buy; sell
B.​buy; buy
C.​sell; sell
D.​sell; buy
E.None of the above answers are correct because the Fed cannot affect the U.S. exchange rate.

ANSWER:

A.​buy; sell