A Sterilized Foreign Exchange Intervention Would

question 93

Multiple Choice

A sterilized foreign exchange intervention would:

• A) alter the asset side of a central bank's balance sheet but leave the domestic monetary base unchanged.
• B) alter the liability side of the central bank's balance sheet but leave the asset side unchanged.
• C) leave the central bank's balance sheet unchanged.
• D) not alter the central bank's holdings of international reserves.

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Definitions:

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A term used in statistics to describe two or more events that have no influence on each other's likelihood of occurring.

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