Question

If the Japanese yen is strengthening against the U.S. dollar, and the Japanese government wanted to boost exports, the central bank of Japan might well:

A. sell U.S. dollars in large amounts in the currency markets.

B. buy massive amounts of Japanese yen in the FX markets.

C. sell massive amounts of Japanese yen in the FX markets.

D. buy massive amounts of other hard currencies, such as the British pound sterling and the euro, to deflect the focus on dollars.

Answer

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