If a Developing Country Has Sufficient Reserves, the Buying and Selling

Multiple Choice

If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:

A) likely to have roughly the same impact on the exchange rate as in developed countries.
B) likely to have a much greater impact on the exchange rate than in developed countries.
C) likely to have a much smaller impact on the exchange rate than in developed countries.
D) completely ineffective on the exchange rate.