Author Question: Central banks intervene in the foreign exchange market A) to smooth out currency fluctuations. ... (Read 160 times)

Charlie · **on:** Jun 30, 2018

Central banks intervene in the foreign exchange market

A) to smooth out currency fluctuations.
B) to facilitate the transfer of goods and services internationally.
C) to conduct foreign exchange operations for central governments.
D) All of the above.

Question 2

The exchange rate between currencies depends on

A) the interest rate that can be earned on deposits of those currencies.
B) the interest rate that can be earned on deposits of those currencies and the expected future exchange rate.
C) the expected future exchange rate.
D) national output.
E) the interest rate that can be earned on deposits of those countries and the national output.