Sterilized Intervention

question 14

Multiple Choice

Sterilized intervention

• A) works less effectively the more integrated world financial markets become.
• B) works regardless of the level of foreign reserves held by a country.
• C) can be effective domestically even if it has perverse international ramifications.
• D) works essentially by exploiting myopic expectations of world traders.
• E) works essentially because of the efficiency of markets in a system of rational expectations.

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Definitions:

Obsessive-Compulsive

Characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that the individual feels the urge to repeat.

Conversion

refers to the process of changing or transforming something from one form to another, such as converting units of measurement or religious beliefs.

PTSD

Post-traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, leading to long-term repercussions.

Obsessive-Compulsive Reaction

An obsessive-compulsive reaction refers to repetitive and intrusive thoughts (obsessions) followed by ritualistic behaviors or mental acts (compulsions) that an individual feels driven to perform.