Given the daily volume of foreign-exchange transactions, it is most accurate to say which of the following?

Given the daily volume of foreign-exchange transactions, it is most accurate to say which of the following?



A) It is impossible for a government's interventions in the foreign-exchange market to affect market psychology.
B) A government's intervention in the foreign-exchange market can reverse a currency's slide for the long term.
C) A government's intervention cannot force the foreign-exchange market to move in a determined direction.
D) A government should focus more on intervening in foreign-exchange markets than on correcting economic fundamentals.




Answer: C


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