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

question 51

Multiple Choice

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

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

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Definitions:

Operating Policies

Rules, guidelines, and procedures established by a company's management to guide the operations and decision-making within the organization.

Financing Policies

Strategies or guidelines that a company follows to decide how to finance its projects, operations, or investments, typically involving decisions between using debt or equity.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or additional shares.

Equity Financing

The method of raising capital by selling company shares to investors in return for ownership stakes in the company.