Which of the Following Statements Is Incorrect

question 94

Multiple Choice

Which of the following statements is incorrect?

• A) Governments affect foreign exchange rates indirectly by altering prevailing interest rates within their own countries.
• B) Foreign currency exchange rates vary with the day-to-day demand and supply of the two foreign currencies.
• C) Central governments can intervene in foreign exchange markets directly and value their currency at high rates relative to another currency.
• D) All of these choices are correct.