________ is the alteration of economic or financial fundamentals which are thought to be drivers of capital to flow in and out of specific currencies.
A) Proportional intervention
B) Direct intervention
C) Indirect intervention
D) Hopeless intervention

Question

Quizplus · Accepted Answer

Indirect intervention is the alteration of economic or financial fundamentals, such as interest rates, inflation, or government policies, in order to influence the flow of capital in and out of specific currencies. This is in contrast to direct intervention, which involves a central bank actively buying or selling a currency to influence its value, and proportional intervention, which involves adjusting the exchange rate within a predetermined range. "Hopeless intervention" is not a commonly used term in the context of currency intervention.

________ Is the Alteration of Economic or Financial Fundamentals Which