ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There are 3 reasons for intervention, one of them are,
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React to permanent disturbances
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Fluctuate of Income Level
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Establish implicit exchange rate boundaries
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High trade of exchange rate
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Explanation:
Detailed explanation-1: -The three types of foreign exchange risk include transaction risk, economic risk, and translation risk. Foreign exchange risk is a major risk to consider for exporters/importers and businesses that trade in international markets.
Detailed explanation-2: -Types of Foreign Exchange Risk. Fundamentally, there are three types of foreign exchange exposure companies face: transaction exposure, translation exposure, and economic (or operating) exposure.
Detailed explanation-3: -interest rate, exchange rate, return on deposits.
Detailed explanation-4: -Explain the three types of exchange rate systems: free-floating, managed, and fixed.
There is 1 question to complete.