If the RBA Is 'Testing' the Foreign Exchange Market, It

question 115

Multiple Choice

If the RBA is 'testing' the foreign exchange market, it is trying to:

• A) reduce excessive fluctuations in the $A.
• B) maintain the $A at its agreed fixed rate.
• C) see whether movement in the value of the currency is real or speculative.
• D) smooth the market.

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Definitions:

Behind

At the back of, or in a position trailing something or someone.

Homeostasis

The physiological process by which an organism maintains internal stability despite changes in the external environment.

Homeo-

A prefix meaning similar or same, used in terms such as homeopathy, which involves treatment with small doses of natural substances that in larger amounts would produce symptoms of the ailment.

Visceral

Relating to the internal organs of the body, especially those within the chest and abdomen.