The Basic Type of Intervention by Central Banks Under the Managed

question 230

Multiple Choice

The basic type of intervention by central banks under the managed floating exchange rate system is to

• A)readjust the peg for exchange rates.
• B)buy and sell currencies to influence supply and demand for foreign exchange.
• C)renegotiate the rate at which foreign currencies can be converted into gold.
• D)make pronouncements but then do nothing and let the market set the exchange rate.

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Definitions:

Heavy Truck

A classification of large vehicles used for hauling heavy loads, often exceeding a certain weight threshold and requiring special licensing to operate.

Trailer Service Brakes

Trailer service brakes are the primary braking system on a trailer, designed to be activated by the driver to slow down or stop the trailer during transport.

Treadle Valve

A type of foot-operated valve used in pneumatic systems of vehicles, especially for controlling the air pressure to brakes.

Panic Application

A sudden and forceful application of the brakes by a driver, typically in an emergency to avoid a collision.