If the Fed Sells $1 Billion of Short-Term Securities Issued

question 67

Multiple Choice

If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,

• A)the monetary base will decline by $1 billion.
• B)the monetary base will rise by $1 billion.
• C)the Fed has conducted an unsterilized foreign-exchange intervention.
• D)the Fed has conducted a sterilized foreign-exchange intervention.

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Definitions:

Brainwriting Sessions

A brainstorming technique where ideas are written down by participants before being shared with the group, aiming to generate a wide range of ideas without immediate critique.

Idea Quota

is a predetermined goal for generating a specific number of ideas within a set period, often used in brainstorming sessions or creativity exercises to stimulate thinking.

Core Group

The central or most influential members within a larger group or organization, often driving decisions and setting directions.

Solitary Time

Periods spent alone, which can be used for reflection, self-discovery, or individual activities without the influence or interruption of others.