When the Fed Allows the Monetary Base to Respond to the Purchase

question 72

Multiple Choice

When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called

• A)open market operations.
• B)hedging.
• C)sterilized intervention.
• D)unsterilized intervention.

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Definitions:

Wages

Payments made to employees for their labor, typically calculated by hour, day, or piece.

Foregone Opportunities

The benefits or income missed out on when choosing one alternative over another.

Tuition

The fee charged for instruction or education provided by schools, colleges, and universities.

Equality

The condition of having equal status, rights, and chances.