can intervene directly in the foreign exchange market by buying or selling dollars.

Question

Quizplus · Accepted Answer

The Fed has the ability to intervene in the foreign exchange market by buying or selling dollars in order to influence the value of the U.S. dollar. This is known as foreign exchange intervention and is often used to stabilize exchange rates and support the economy. The other listed entities (IMF, Congress, and Treasury department) also play important roles in the global financial system, but they do not have direct control over currency exchange rates in the same way that the Fed does.

Can Intervene Directly in the Foreign Exchange Market by Buying