Why do Central banks intervene to affect exchange rates?
(A) To influence domestic production
(B) To influence trade flows
(C) To influence domestic interest rates
(D) To inject liquidity in domestic markets
(E) To smoothen fluctuations in exchange rates.
Choose the most appropriate answer from the options given below:
1
(A), (B) and (C) only
2
(C), (D) and (E) only
3
(B), (C) and (D) only
4
(A), (B) and (E) only