Foreign Exchange Market Intervention Is Most Effective When

question 50

Multiple Choice

Foreign exchange market intervention is most effective when:

• A)each country's political leaders agree to cooperate fully with the process.
• B)leading economists in each country concur that intervention is needed.
• C)permanent differences between the free market exchange rate and the fixed exchange rate are expected.
• D)temporary differences between the free market exchange rate and the fixed exchange rate are expected.
• E)all the countries restrict the international movement of goods and services.

---

Definitions:

Risks

The potential for losses or negative outcomes resulting from internal or external vulnerabilities or threats.

CEO

Chief Executive Officer; the highest-ranking person in a company or organization, responsible for making overarching decisions.

Naming a Successor

The process of identifying and appointing an individual to take over a role or position after the current holder leaves or retires.

Key Executive

A high-ranking individual in a company who has significant responsibility for managing an essential part of the business.