An Unsterilized Foreign-Exchange Intervention Occurs

question 5

Multiple Choice

An unsterilized foreign-exchange intervention occurs

• A)whenever a central bank purchases or sells domestic currency.
• B)whenever a central bank purchases or sells foreign currency.
• C)whenever a central bank allows the monetary base to respond to the sale or purchase of domestic currency.
• D)whenever a central bank fails to reduce its holdings of gold by the amount of a foreign-exchange purchase.

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Definitions:

Ethane Gas

A colorless, odorless gas that is the simplest alkane, with the formula C2H6, used as a fuel and a petrochemical feedstock.

Total Combustion

A complete combustion process in which a fuel burns in oxygen, producing a limited number of products and releasing energy.

Sugar

A sweet-flavored substance, primarily sucrose, lactose, and fructose, derived from various plants and used for human consumption.