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:

Credit Memo

A credit memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under previous transactions, often due to a return or a mistake.

Periodic Inventory System

An inventory tracking method where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory.

Cost of Goods Sold

Directly attributable expenses for creating the goods that a company sells, including materials and labor costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, highlighting the net profit or loss.