Because Sterilized Interventions Mean Offsetting Open Market Operations,there Is No

question 32

Multiple Choice

Because sterilized interventions mean offsetting open market operations,there is no impact on the monetary base and the money supply,and therefore a sterilized intervention

• A)causes the exchange rate to overshoot in the short run.
• B)causes the exchange rate to undershoot in the short run.
• C)causes the exchange rate to depreciate in the short run,but has no effect on the exchange rate in the long run.
• D)has no effect on the exchange rate.

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Definitions:

Fiscal Policies

Government policies related to taxation and spending that aim to influence the economy's level of activity.

Environmental Standards

Regulations and criteria set by governmental or international bodies to control the level of pollutants released into the environment and ensure the protection of natural resources.

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The science and practice of protecting and improving the health of communities through education, policy making, and research for disease and injury prevention.

Cross-border Flow

Movements of goods, services, capital, and people across international borders.