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19) Intervention in the foreign exchange market is the process of A) commercial banks in different countries coordinating efforts in order to stabilize one or

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19) Intervention in the foreign exchange market is the process of A) commercial banks in different countries coordinating efforts in order to stabilize one or more currencies. B) the government of a country prohibiting transactions in one or more currencies. C) a central bank buying or selling its currency in order to influence its value. D) a central bank requiring the commercial banks of that country to trade at a set price level. 20) Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost of 512,100. The U.S. importer will contact his U.S. bank (where of course he has an account denominated in U.S. dollars) and inquire about the exchange rate, which the bank quotes as 1.0242/$1.00. The importer accepts this price, so his bank willthe importer's account in the amount of A) credit; $500,000 B) debit; $500,000 C) debit; $524,492 D) debit; 512,100

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