Question : A country's central bank can intervene in the foreign exchange market to influence the value of its currency. This is known as ________.

Option 1: exchange rate targeting
 

Option 2: currency manipulation
 

Option 3: foreign exchange intervention

Option 4: exchange rate pegging

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 : 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 : When the Government wants to strengthen the rupee, it ________ foreign currency and ______ domestic currency.

Option 1: Buys, Sells
 

Option 2: Sells, Sells
 

Option 3: Sells, Buys

Option 4: Buys, Buys

Question : What is the term used to describe the practice of a country manipulating its currency to gain an unfair trade advantage?

Option 1: Currency hedging
    

Option 2: Currency speculation
    

Option 3: Currency pegging

Option 4: Currency manipulation