Which of the Following Is NOT a Technique Used by Governments

question 48

Multiple Choice

Which of the following is NOT a technique used by governments or central banks to impact domestic currency valuation?

• A) Indirect Intervention
• B) Direct Intervention
• C) Capital Controls
• D) All of the above are techniques used to control currency valuation.

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Definitions:

National Saving

The total amount of saving in a country, equal to the sum of private and public saving, representing the national income not spent on consumption or government expenditure.

Public Saving

The portion of a government's budget surplus, which is the difference between tax revenues and government spending.

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or taxes, typically saved for future investment or consumption.

Closed Economy

An economy that does not interact with other economies in the world