In Addition to Economic Variables,intervention of the Government in the FX

question 52

Multiple Choice

In addition to economic variables,intervention of the government in the FX market may affect the equilibrium exchange rate.Which of the following interventions does the Australian government continue to pursue?

• A) Increased tariff protection in the car industry and textile, clothing and footwear industries.
• B) Implementing tougher foreign investment guidelines, imposed by the Foreign Investment Review Board.
• C) Active participation in the FX market to maintain the AUD exchange rate within a target exchange rate band published in the Reserve Bank Bulletin.
• D) None of the given answers.

---

Definitions:

Anticoagulant

A substance that prevents blood clotting, thereby reducing the risk of heart attacks, strokes, and other serious conditions.

Carbon Dioxide

An invisible, scentless gas formed from the combustion of carbon-based substances and breathing.

Oxygen

A colorless, odorless reactive gas, the life-supporting component of the air.

Erythropoiesis

The process by which red blood cells (erythrocytes) are produced, which occurs in the bone marrow.