Foreign exchange market intervention refers to:
A) actions taken by speculators to increase profits from trading.
B) actions taken to lower currency trading risks and make the markets safer.
C) the forgiving of penalties and other punishments for illegal foreign exchange activities.
D) government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency.

Question

Quizplus · Accepted Answer

Foreign exchange market intervention refers to government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency. This is often done to counteract excessive fluctuations in the currency's value that could harm the economy.

Foreign Exchange Market Intervention Refers To