A Sterilized Foreign Exchange Intervention Would

question 93

Multiple Choice

A sterilized foreign exchange intervention would:

• A) alter the asset side of a central bank's balance sheet but leave the domestic monetary base unchanged.
• B) alter the liability side of the central bank's balance sheet but leave the asset side unchanged.
• C) leave the central bank's balance sheet unchanged.
• D) not alter the central bank's holdings of international reserves.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the smooth muscles and heart and gland functions.

Sympathetic

Part of the autonomic nervous system that increases the heart rate, constricts blood vessels, and raises blood pressure, typically activated in stress responses.

Parasympathetic

One part of the autonomic nervous system that promotes relaxation, conservation of energy, and digestion.

Cocaine

A powerful and addictive stimulant drug derived from the leaves of the coca plant, known for its euphoric effects.