An Unsterilized Intervention in Which Domestic Currency Is Sold to Purchase

question 54

Multiple Choice

An unsterilized intervention in which domestic currency is sold to purchase foreign assets leads to

• A) a gain in international reserves.
• B) an increase in the money supply.
• C) an appreciation in the domestic currency.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on personal vehicles, and loss of natural habitats.

Low-Cost Gasoline

Gasoline that is available at a lower price, often due to government subsidies, regional availability, or lessened environmental regulations.

Government-Funded Highways

Roads and transport routes built and maintained by the government using public funds.

Mass Transit

A system of large-scale public transportation in a city or metropolitan area, designed to move large numbers of people efficiently.