Given the Daily Volume of Foreign-Exchange Transactions, It Is Most

question 56

Multiple Choice

Given the daily volume of foreign-exchange transactions, it is most accurate to say which of the following?

• A)It is impossible for a government's interventions in the foreign-exchange market to affect market psychology.
• B)A government's intervention in the foreign-exchange market can reverse a currency's slide for the long term.
• C)A government's intervention cannot force the foreign-exchange market to move in a determined direction.
• D)A government should focus more on intervening in foreign-exchange markets than on correcting economic fundamentals.

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