Direct intervention
What Direct intervention means in Economics A-Level, as defined for AQA.
Definition of Direct intervention
Check what you remember
Read the wording for your board, then hide it and explain Direct intervention in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Using foreign currency reserves to buy or sell the domestic currency in foreign exchange markets.
Topics that use Direct intervention
- Exchange rate systems (AQA A-Level)
Related terms
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Currency union
- Depreciation
- Fixed exchange rate systems
- Floating exchange rate systems
- Freely floating exchange rate system
Using Direct intervention in the exam
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