Why do governments intervene in the foreign exchange market?   Check all that apply:   To maintain exchange rate boundaries   To reduce fear in financial markets To smooth out the business cycle To smooth out exchange rate movements To earn a profit for the government

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter3: International Financial Markets
Section: Chapter Questions
Problem 1QA
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Question

Why do governments intervene in the foreign exchange market?

 

Check all that apply:

 

To maintain exchange rate boundaries

 

To reduce fear in financial markets

To smooth out the business cycle

To smooth out exchange rate movements

To earn a profit for the government

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