Everything Else Held Constant,if a Central Bank Makes a Sterilized

question 93

Multiple Choice

Everything else held constant,if a central bank makes a sterilized purchase of foreign assets,then the domestic currency will

• A)appreciate.
• B)depreciate.
• C)either appreciate,depreciate,or remain constant.
• D)not be affected.

---

Definitions:

Parameters

Quantitative values that define the behavior and characteristics of a model or function.

Classical Definition

The Classical Definition, often referred to in the context of probability, is an approach where the probability of an event is calculated by dividing the number of favorable outcomes by the total number of equally likely outcomes.

Probability

Probability measures the likelihood of a particular event occurring, expressed as a number between 0 and 1, where 1 represents certainty.

Probability Density Function

A function that describes the likelihood of a random variable to take on a specific value, used in the realm of statistics.