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Question
Given the daily volume of foreign-exchange transactions, it is most accurate to say which of the following?
A) It is impossible for a government's interventions in the foreign-exchange market to affect market psychology.
B) A government's intervention in the foreign-exchange market can reverse a currency's slide for the long term.
C) A government's intervention cannot force the foreign-exchange market to move in a direction it doesn't want to go.
D) A government should focus more on intervening in foreign-exchange markets than on correcting economic fundamentals.
Answer
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