Which of the Following Is Not True Regarding Government Intervention

question 105

Multiple Choice

Which of the following is not true regarding government intervention?

• A) Under the direct method of intervention, an appreciation of the dollar would be accomplished by exchanging dollars for foreign currencies.
• B) Under nonsterilized intervention, the Fed would intervene in the foreign exchange market without adjusting the money supply.
• C) Under sterilized intervention, the Fed would intervene simultaneously in the foreign exchange and Treasury markets.
• D) Under indirect intervention, the Fed would attempt to affect the dollar's value by indirectly influencing the factors that determine it, such as interest rates.
• E) All of these are true.

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Definitions:

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Principal

In legal and business context, the principal is a party who authorizes an agent to act on their behalf for the purpose of conducting specific tasks or transactions.

Employee's Negligence

An employee’s failure to exercise reasonable care in the course of their work duties, which results in harm to another.

Intentional Torts

Wrongful acts committed with the intention of causing harm to others, which can include assault, battery, and defamation.