Which of the Following Is True

question 5

Multiple Choice

Which of the following is true?

• A)When the Fed participates in an intervention, it does so by purchasing or selling dollars for other foreign currencies.
• B)Reserves are augmented when the Fed sells foreign currencies in exchange for dollars.
• C)Reserves are decreased when the Fed sells dollars in exchange for foreign currencies that it has previously accumulated.
• D)Sterilization will insure that a foreign exchange operation affects the monetary base.

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Definitions:

Marketing Environment

The external factors and forces that affect a company's ability to develop and maintain successful transactions and relationships with its target customers.

Income Distribution

The way in which total income is shared among the population of a country or region.

Demographic Characteristics

Statistical data relating to the population and the particular groups within it, such as age, gender, income, and education levels.

Consumer Confidence

Consumer confidence is a measure of how optimistic or pessimistic consumers are regarding their expected financial situation, significantly influencing their spending and saving behaviors.