A Foreign Exchange Intervention with an Offsetting Open Market Operation

question 47

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) a balance-of-payment exchange rate rule.
• D) monetary neutrality.

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Definitions:

Implied Warranty of Fitness

A legal assumption in many jurisdictions that a product sold will be suitable for the particular purpose for which the buyer intends to use it.

"As Is"

A term specifying that an item is being sold in its current condition, with all faults and without warranty, typically in a sales contract.

"With All Faults"

A term in contracts indicating that the buyer accepts the item as is, including all defects.

Express Warranty

An express warranty is an explicit guarantee made by a seller regarding the quality, functionality, or performance of a product, which forms part of the contract of sale.