_______ is the situation where the central bank buys or sells foreign currencies to affect the country's exchange rate.

Question

Quizplus · Accepted Answer

Foreign exchange market intervention is a situation where the central bank buys or sells foreign currencies to affect the country's exchange rate. Capital flight refers to the situation where investors move their money out of a country due to economic or political instability. Expansionary monetary policy refers to the situation where the central bank increases the money supply to boost economic growth. Revaluation refers to the increase in the value of a country's currency relative to other currencies.

_______ Is the Situation Where the Central Bank Buys or Sells