Foreign Exchange Market Intervention Is Most Effective When

Multiple Choice

Foreign exchange market intervention is most effective when:

A) each country's political leaders agree to cooperate fully with the process.
B) leading economists in each country concur that intervention is needed.
C) permanent differences between the free market exchange rate and the fixed exchange rate are expected.
D) temporary differences between the free market exchange rate and the fixed exchange rate are expected.
E) all the countries restrict the international movement of goods and services.