The Main Difference Between a Sterilized Intervention and Unsterilized Intervention

question 86

Multiple Choice

The main difference between a sterilized intervention and unsterilized intervention in the foreign exchange market is

• A) a sterilized intervention is coordinated with other nations.
• B) an unsterilized intervention does not change the exchange rate.
• C) an unsterilized intervention does not change the monetary base.
• D) a sterilized intervention does not change the monetary base.

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Definitions:

Shelter Principle

A legal concept that allows a person who receives goods in good faith without knowledge of a defect in the title to sell them with a clear title.

Holder

A party in possession of a negotiable instrument.

Bearer

An individual in possession of a negotiable instrument or security that is payable to whomever holds the document.

Holder in Due Course

A legal term referring to a party that has acquired a negotiable instrument in good faith and for value, with certain protections against previous claims.