Intervention in the Foreign Exchange Market Is the Process of

question 63

Multiple Choice

Intervention in the foreign exchange market is the process of

• A)a central bank requiring the commercial banks of that country to trade at a set price level.
• B)commercial banks in different countries coordinating efforts in order to stabilize one or more currencies.
• C)a central bank buying or selling its currency in order to influence its value.
• D)the government of a country prohibiting transactions in one or more currencies.

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Definitions:

Non-Negative Profit

A profit that is zero or positive, indicating that a business is not losing money.

Economic Profit

The financial gain obtained by a firm or individual after subtracting all explicit and implicit costs from total revenue, often indicating the efficiency and profitability of business operations.

Short Run

A time period in economics during which at least one input is fixed while others are variable.

Produce

Fresh agricultural products such as fruits, vegetables, and other food crops that are grown and harvested.