If a Central Bank Engages in an Unsterilized Foreign-Exchange Intervention

question 61

Multiple Choice

If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,

• A)the central bank's holdings of international reserves will fall.
• B)the domestic money supply will rise.
• C)domestic interest rates will fall.
• D)it will buy foreign assets.

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Definitions:

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Pertains to the essential elements or specific substance of a matter, often used to describe laws or regulations that govern actual rights and duties.

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Guidelines or principles that dictate the specific processes and procedures within court or administrative proceedings.

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