Why May a Central Bank Intervene in the Foreign Exchange

question 31

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

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Definitions:

Antigens

Substances, usually proteins, on the surface of bacteria, viruses, and other foreign substances, that trigger an immune response in the body.

Allergens

Substances that cause allergic reactions by triggering an immune response in susceptible individuals.

Lymphocytes

White blood cells that circulate through the lymph system and bloodstream, helping the body identify and destroy antigens and cancer cells.

Antigens

Substances that the immune system recognizes as foreign or dangerous, leading to an immune response.