Which of the following statements is true? a. Under direct intervention, central banks influence factors that...
Which of the following statements is true?
a. Under direct intervention, central banks influence factors that determine the value of a currency.
b. None of the above
c. Under indirect intervention, central banks change interest rates to influence the value of currency.
d. Under indirect intervention, central banks buys and sells foreign currency.
Homework Answers
Solution :-
The Correct Answer is ( C) that is Under indirect intervention, central banks change interest rates to influence the value of currency.
The Option A is incorrect as it is Indirect Intervention
and Option D is incorrect as it is operational Intervention and Operational Intervention is Direct Intervention
If there is any doubt please ask in comments
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