What Is the Difference Between a Sterilized and Non-Sterilized Central

question 77

Essay

What is the difference between a sterilized and non-sterilized central bank intervention in the foreign exchange market?

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Definitions:

Paid-In Capital

Funds raised by a company through the issuance of shares to shareholders, representing capital contributed to the business above the nominal or par value of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or existing shareholders for sale.

Stock Dividends Distributable

Shares that are to be given to shareholders as dividends, which have been declared by a company’s board but have not yet been distributed.