Sterilization Refers to Actions Taken by Central Banks

question 27

Multiple Choice

Sterilization refers to actions taken by central banks

• A) to neutralize the effects of balance of payments disequilibria on the money supply.
• B) to increase gold inflows when there is a balance of payments surplus.
• C) to decrease gold outflows when there is a balance of payments surplus.
• D) to cause the exchange rate to appreciate or depreciate.

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