Foreign Exchange Market Intervention Like Devaluation or Revaluation Occurs

question 105

Multiple Choice

Foreign exchange market intervention like devaluation or revaluation occurs

• A)when a central bank changes interest rates.
• B)whenever there is countercyclical fiscal policy.
• C)only if a country has adopted a flexible exchange rate policy.
• D)when a country's government buys or sells foreign currency to affect its exchange rate.
• E)only when countries want to permanently alter exchange rates.

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Definitions:

Planning Budget

A forecast of income and expenditure over a specified future period, used to guide the financial direction of a business.

Budgeting

The process of creating a plan to allocate resources (revenue and expenses) for a specific period, typically used for financial planning and control.

Activity Variances

Differences between the planned or budgeted amounts of costs and revenues and the actual amounts incurred, driven by variations in business activities.

Customers Served

The number of customers a business or service has provided for or sold to during a specific period, indicating the reach or impact of the business.