Common Reasons Mentioned in the Text for Central Bank Intervention

question 74

Multiple Choice

Common reasons mentioned in the text for central bank intervention in the foreign exchange market include all of the following except:

• A) to provide an alternative form of bank deposit insurance.
• B) to establish implicit exchange rate boundaries.
• C) to respond to temporary disturbances.
• D) to smooth exchange rate movements.

---

Definitions:

Procedural Memory

A type of long-term memory for how to perform different actions and skills, essentially the memory of how to do things.

Hippocampus

A region of the brain involved in the formation of new memories and is associated with learning and emotions.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and manipulation needed for complex tasks such as learning, reasoning, and comprehension.

Posterior Temporal Lobe

A region of the brain located at the lower back part of the temporal lobe, important for processing auditory information and encoding memory.