Which of the Following Is False

question 14

Multiple Choice

Which of the following is false?

• A)One reason why central banks may intervene in financial marks is to resolve a severe but temporary liquidity crisis and to stabilize international financial markets.
• B)One reason why central bankers may intervene in foreign exchange markets is they believe exchange rates are deviating significantly from fundamental underlying values (that is, the dollar is overvalued or undervalued because of speculation in the market).
• C)In late 2000, central banks of major industrialized countries carried out a coordinated intervention to boost the value of the sagging euro.
• D)Central bank intervention has proven successful in that the goals of the intervention have always been met.

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Definitions:

Retained Earnings Statement

A summary of the changes in the retained earnings in a corporation that have occurred during a specific period of time, such as a month or a year.

Income Statement

A financial report summarizing a company's revenues, expenses, and profit over a specific period, giving insight into its operational profitability.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in net income or loss.