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Basic Question 4 of 6
Which statement is true regarding the effectiveness of central bank intervention?
B. Some studies find that compared to their developed country counterparts, EM policymakers can exert a bigger influence on the level and path of their exchange rates.
C. A study by Magud, Reinhard and Rogoff concludes that capital controls on inflows make monetary policy more dependent on a country's FX policy.
A. Central bank intervention can be very effective in developed countries due to their well-developed financial markets.
B. Some studies find that compared to their developed country counterparts, EM policymakers can exert a bigger influence on the level and path of their exchange rates.
C. A study by Magud, Reinhard and Rogoff concludes that capital controls on inflows make monetary policy more dependent on a country's FX policy.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe objectives of central bank or government intervention and capital controls and describe the effectiveness of intervention and capital controls;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.