Because Sterilized Interventions Mean Offsetting Open Market Operations

question 21

Multiple Choice

Because sterilized interventions mean offsetting open market operations,

• A) there is no impact on the monetary base.
• B) there is no impact on the money supply.
• C) there is no effect on the exchange rate.
• D) all of the above occur.
• E) only A and B of the above occur.

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Definitions:

Acceptable Assumptions

The premises that are considered reasonable and are accepted without requiring empirical evidence, often used as a foundational basis in arguments or theories.

Random Sampling

A method of selecting a sample from a population in such a way that each individual has an equal probability of being chosen, ensuring the representativeness of the sample.

Equal Chance

The principle that in a certain process, event, or situation, all outcomes or participants have the same probability or likelihood of occurring or being selected.

Correlation

A statistical measure that expresses the extent to which two variables change together; if the correlation is positive, as one variable increases, the other does as well.