An Unsterilized Foreign-Exchange Intervention Occurs

question 5

Multiple Choice

An unsterilized foreign-exchange intervention occurs

• A)whenever a central bank purchases or sells domestic currency.
• B)whenever a central bank purchases or sells foreign currency.
• C)whenever a central bank allows the monetary base to respond to the sale or purchase of domestic currency.
• D)whenever a central bank fails to reduce its holdings of gold by the amount of a foreign-exchange purchase.

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Definitions:

Prediscussion Polling

The practice of collecting individual opinions before a group discussion takes place.

Common Information Effect

this phenomenon occurs when group members tend to focus and give more weight to information that everyone in the group knows, often at the expense of unique but possibly more valuable information.

Intervention

A deliberate process or action taken to improve a situation or address a problem within a team or organizational context.

Selective Exposure

The tendency to favor information or sources that reinforce existing beliefs, values, or attitudes, while avoiding contradictory information.