Central banks' combined resources are not adequate to reverse a fundamental trend in the foreign exchange market

Question

Quizplus · Accepted Answer

Central banks can influence short-term fluctuations in the foreign exchange market, but they do not have enough resources to reverse long-term trends or shifts in market sentiment. These trends are driven by factors such as economic growth, interest rates, and political stability, among others, and are difficult for central banks to control.

Central Banks' Combined Resources Are Not Adequate to Reverse a Fundamental