What Is the Meaning and Purpose of a Sterilized Intervention

question 2

Multiple Choice

What is the meaning and purpose of a sterilized intervention?

• A)A sterilized intervention happens when a more valuable currency is repeatedly traded to reduce a country's interest rates.
• B)A sterilized intervention happens when a less valuable currency is repeatedly traded for currencies of increasing value.
• C)A sterilized intervention happens when a central bank buys a foreign currency and also buys government securities to offset the decrease in the monetary base.
• D)A sterilized intervention happens when a central bank buys its own country's currency and also buys government securities to offset the decrease in the monetary base.

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Definitions:

Decentration

The cognitive ability to consider multiple aspects of a situation instead of focusing on a single viewpoint, a concept often discussed in developmental psychology.

Conservation of Number

A concept in cognitive development that reflects a child's ability to understand that the quantity of a set of items remains the same regardless of how they are arranged.

Spatial Rearrangements

Changes or modifications in the position or arrangement of objects in space.

Conservation-of-Number Task

A cognitive test used in developmental psychology to assess a child's understanding that a quantity does not change despite changes in its shape or arrangement.