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:

Ego-Focused

Refers to a perspective or behavior primarily concerned with self-interest and personal well-being.

Sentiment

The social aspect of emotion. Components of human responses that separate them from analogous responses animals would have.

Affect

A subjective positive or negative evaluation of an object, which can vary in direction, intensity, and activity.

Emotion

A complex psychological state involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.