Although the mechanics of central bank interventions in the global currency markets may vary from country to country,the goal is always the same,to ____ the demand for one currency by ______ the supply of another.
A)increase,increasing
B)decrease,decreasing
C)increase,decreasing
D)decrease,increasing

Question

Quizplus · Accepted Answer

Central banks intervene in the currency markets to influence the exchange rate of their currency. They do this by buying or selling foreign currencies, which increases or decreases the supply of those currencies in the market. This, in turn, affects the demand for the central bank's own currency.

Although the Mechanics of Central Bank Interventions in the Global