Under a Fixed Exchange Rate System,a Balance of Payments Surplus

question 45

Multiple Choice

Under a fixed exchange rate system,a balance of payments surplus may:

• A)decrease the country's money supply if there is a non-sterilized central bank intervention.
• B)decrease the country's money supply if there is a sterilized central bank intervention.
• C)increase the country's money supply if there is a non-sterilized central bank intervention.
• D)increase the country's money supply if there is a sterilized central bank intervention.

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