Question : What is the term used to describe a situation where a country's central bank actively buys or sells its own currency in the foreign exchange market to influence its value?

Option 1: Currency manipulation
   

Option 2: Currency pegging
    

Option 3: Currency arbitrage

Option 4: Currency intervention

Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?

Option 1: Currency intervention
  

Option 2: Currency hedging
 

Option 3: Currency manipulation

Option 4: Currency pegging

Question : In a managed exchange rate system, the central bank of a country may intervene to influence the exchange rate by buying or selling its currency in the foreign exchange market. This intervention is aimed at ________.

Option 1: maintaining price stability
 

Option 2: promoting economic growth
 

Option 3: controlling inflation

Option 4: managing trade imbalances

Question : What is the term used to describe the rate at which a central bank buys or sells its own currency in the foreign exchange market?

Option 1: Spot exchange rate
 

Option 2: Nominal exchange rate
   

Option 3: Intervention exchange rate

Option 4: Forward exchange rate

Question : Which of the following steps should taken by the central bank if there is excessive rise in the foreign exchange rate?

Option 1: Supply foreign exchange from its stock
 

Option 2: Demand more of other foreign exchange
 

Option 3: Not intervene in the market as exchange rate is determined by the market forces

Option 4: Help central government to stabilize foreign exchange rate