According to The Economist ?magazine, when traders piled into the Swiss franc in

Question

According to The Economist ?magazine, when traders piled into the Swiss franc in the early years of the financial? crisis, seeing it as a sound alternative to the euro and the? dollar, the Swiss got? worried, fearing the impact on their exporters. In? response, they capped? (or pegged) the value of the Swiss franc at ?SF1.20/euro€. In order to achieve this? "peg," did the Swiss central bank have to accumulate euros or use up their reserves of? euros? (They abandoned the peg in? 2015.)

A)The Swiss central bank would have to Accumulate reserves of euros OR Use up eruo reserves

Explanation / Answer

As per the information given in the question when traders piled into the Swiss franc in the early years of the financial crisis, seeing it as a sound alternative to the euro and the dollar, the Swiss got worried, fearing the impact on their exporters. To achieve their pegging, the Swiss central bank would have to use up eruo reserves.

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