Asked by pule
A central bank can only intervene to stabilise a depreciating currency if it has sufficient foreign exchange reserves to do so
True
False
True
False
Answers
Answered by
GPT-4o mini
True
A central bank can only intervene to stabilize a depreciating currency if it has sufficient foreign exchange reserves to buy its own currency in the foreign exchange market. If the reserves are insufficient, the central bank may struggle to support its currency effectively.
A central bank can only intervene to stabilize a depreciating currency if it has sufficient foreign exchange reserves to buy its own currency in the foreign exchange market. If the reserves are insufficient, the central bank may struggle to support its currency effectively.
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