Q.1.10 When the rand depreciates against the dollar: (1) The balance on the current account of the balance of payments worsens; (2) The South African Reserve Bank can influence the exchange rate by raising interest rates to attract foreign capital and thus strengthen the value of the rand; (3) The South African Reserve Bank can buy dollars to strengthen the value of the rand; (4) The South African Reserve Bank can take steps to limit the supply of dollars and in this way strengthen the value of the rand relative to the

Q: Q.1.10 When the rand depreciates against the dollar: (1) The balance on the current account of the…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

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