In September 1992,the Bundesbank attempted to keep the mark from appreciating relative to the British pound,but it failed because participants in the foreign exchange market came to expect the

Question

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The Bundesbank's attempt to keep the mark from appreciating relative to the British pound failed because market participants expected the mark to appreciate. This expectation made it difficult for the Bundesbank to maintain the desired exchange rate, as investors would buy marks in anticipation of the appreciation, thereby increasing its value despite the efforts to prevent it.

In September 1992,the Bundesbank Attempted to Keep the Mark from Appreciating