Example of indirect intervention in foreign exchange markets

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Reference no: EM131975937

1. A company's current asset investment policy is likely to have the following impact on its ROE and risk:

Current asset investment policy has been shown to have no significant impact on ROE or risk

A restricted current asset investment policy reduces risk of cash shortfall

Investment policies are not applicable to current assets

A restricted current asset investment policy will reduce ROE

A restricted current asset investment policy will increase ROE

2. Which of the following is an example of indirect intervention in foreign exchange markets?

a. lowering interest rates.

b. increasing the inflation rate.

c. exchanging dollars for foreign currency.

d. Both A and B.

Reference no: EM131975937

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