Multiple Choice
Why may a central bank intervene in the foreign exchange market when its currency is appreciating?
A) Concerns about the country's exports becoming less competitive
B) Concerns about inflation
C) Concerns about imports becoming less competitive
D) To sterilize the effects on the domestic economy
Correct Answer:
Verified
Correct Answer:
Verified
Q26: In 1987, the so-called Louvre Accord<br>A)formally abolished
Q27: Currently, the dominant reserve currency is the<br>A)U.S.
Q28: The Bretton Woods system was expected to
Q29: Which of the following statements about a
Q30: The gold standard probably made the Great
Q32: Deliberate actions by a central bank to
Q33: The fixed exchange rates of the Bretton
Q34: A sterilized intervention will have its greatest
Q35: In the early 2000s, the Argentine government's
Q36: Foreign central banks<br>A)can affect the U.S. money