A Foreign Exchange Intervention with an Offsetting Open Market Operation

question 83

Multiple Choice

A foreign exchange intervention with an offsetting open market operation that leaves the monetary base unchanged is called

• A)an unsterilized foreign exchange intervention.
• B)a sterilized foreign exchange intervention.
• C)an exchange rate feedback rule.
• D)a money neutral foreign exchange intervention.

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Definitions:

Incidental Beneficiary

A person who gains a benefit from a contract between two other parties, but whose benefit was not the reason the contract was created.

Wage Earner's Assignment

A legal agreement allowing for the voluntary deduction of money from an employee's wages to pay off debts.

Statutes

Laws established by legislative bodies at local, state, or federal levels.

Future Wages

The earnings an individual is anticipated to make in the future, sometimes considered in legal judgments or financial planning.