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If the Bank of Japan Buys Yen to Prevent the Yen

Question 99

Multiple Choice

If the Bank of Japan buys yen to prevent the yen from appreciating,


A) it is probably also trying to profit from that operation
B) it is probably also trying to maintain an interest rate target
C) it is engaging in bilateral arbitrage
D) it is engaging in a managed float
E) it is wasting its time and effort

Correct Answer:

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