If a central bank intervenes in the foreign exchange market to prevent appreciation of domestic currency by purchasing foreign assets, the immediate…
CA Foundation · Business Economics · MTP · September 2026
If a central bank intervenes in the foreign exchange market to prevent appreciation of domestic currency by purchasing foreign assets, the immediate impact on BOP accounts will be:
Suggested Answer and Working Notes:
Correct Answer: Option (C)
C. increase in official reserve assets
Topics: International Trade
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