If a Central Bank Engages in an Unsterilized Foreign-Exchange Intervention

question 61

Multiple Choice

If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,

• A)the central bank's holdings of international reserves will fall.
• B)the domestic money supply will rise.
• C)domestic interest rates will fall.
• D)it will buy foreign assets.

---

Definitions:

Mindfulness Meditation

A practice of concentrated focus upon a sound, object, visualization, the breath, movement, or attention itself in order to increase awareness of the present moment, reduce stress, promote relaxation, and enhance personal and spiritual growth.

Traditional Chinese Medicine

A holistic approach to health care originating from China, incorporating methods like herbal medicine, acupuncture, and qi gong to balance the body's energy.

Acupressure

A form of traditional Chinese medicine where pressure is applied to specific points on the body to alleviate pain or to treat various health conditions.

Tui Na

A form of Chinese manipulative therapy often used in conjunction with acupuncture, moxibustion, and other traditional Chinese medical practices for therapeutic effects.