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:

Community

A group of interacting living organisms sharing a populated environment, often considered within the context of ecological and biological studies.

Atmospheric Reservoir

refers to the part of the Earth's atmosphere that acts as a storage place for gases and plays a key role in the global climate.

Carbon Cycle

The series of processes by which carbon compounds are interconverted in the environment, chiefly involving the incorporation of carbon dioxide into living tissue by photosynthesis and its return to the atmosphere through respiration, the decay of dead organisms, and the burning of fossil fuels.

Decomposer

Organism, usually a bacterium or fungus, that breaks down organic matter into inorganic nutrients that can be recycled in the environment.