Under Which of the Following Policies Does the Government Enter

question 3

Multiple Choice

Under which of the following policies does the government enter the foreign exchange market and buy or sell foreign currency in order to influence the exchange rate of the domestic currency?

• A)Exchange controls
• B)Capital controls
• C)Official intervention
• D)Adjustable peg

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Definitions:

Unemployed

A term describing individuals who are capable of working, actively seeking work, but unable to find a job.

Full Employment

A situation in which all available labor resources are being used in the most efficient way possible, implying minimal involuntary unemployment.

Economic Goal

Objectives that societies or governments aim to achieve to ensure long-term sustainable prosperity.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically with low unemployment.