"Like many other markets, the foreign exchange market is not free of government intervention; central bank regularly engages in international financial transactions, the purchase and sale of their currencies, called foreign exchange interventions, to influence exchange rates. In current international environment, exchange rate fluctuates from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies. " Based on the above statement you are required to discuss the following issues: i. Foreign Exchange Intervention and Money Supply. (6 marks)