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Which of the Following Statements Is Incorrect

Question 2

Multiple Choice
Which of the following statements is incorrect?
A) Central banks often consider adjusting a currency's value to influence economic conditions.
B) If the U.S. central bank wishes to stimulate the economy, it could weaken the dollar.
C) A weaker dollar could cause U.S. inflation by reducing foreign competition.
D) Direct intervention occurs when the central bank influences the factors that determine the dollar's value.

Which of the following statements is incorrect?


A) Central banks often consider adjusting a currency's value to influence economic conditions.
B) If the U.S. central bank wishes to stimulate the economy, it could weaken the dollar.
C) A weaker dollar could cause U.S. inflation by reducing foreign competition.
D) Direct intervention occurs when the central bank influences the factors that determine the dollar's value.

Correct Answer:

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