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A sudden sharp increase in the demand for the German mark almost destroyed the Exchange Rate Mechanism in 1992. Which of the following does not help explain how a rise in the demand for a currency can jeopardize a target zone or exchange rate​ band?A.Some countries may decide that the cost of staying in the target zone is too great and decide to leave.B.Buying up additional marks and reducing interest rates create extra demand for the currency that is falling in value.C.An increase in the value of the mark is equivalent to a decrease in the value of the other currencies. The fall in value suffered by currencies pushed them out of the range of values they were obliged to maintain against the mark.D.Additional domestic problems are created if either the reserves of foreign currency that are being used to buy up the domestic currency runs​ out, or if the increase in interest rates is harmful to the domestic economy.

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