Sterilization Occurs When the Fed

question 71

Multiple Choice

Sterilization occurs when the Fed

• A) offsets the effects of international currency flows with a protectionist trade policy.
• B) directs a permanent increase of the money supply.
• C) offsets the effects of a foreign exchange market intervention with domestic open market operations.
• D) implements a fixed exchange rate system.
• E) changes the domestic prime lending rate in response to foreign exchange market intervention.

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Definitions:

Diffusion of Technology

The process by which new technologies are adopted and spread across cultures or societies.

Sociological Question

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The warming of Earth's surface and atmosphere caused by the trapping of the sun's radiant energy by greenhouse gases.