Which of the Following Is Not True Regarding Government Intervention

question 90

Multiple Choice

Which of the following is not true regarding government intervention?

• A) Under the direct method of intervention, an appreciation of the dollar would be accomplished by exchanging dollars for foreign currencies.
• B) Under nonsterilized intervention, the Fed would intervene in the foreign exchange market without adjusting the money supply.
• C) Under sterilized intervention, the Fed would intervene simultaneously in the foreign exchange and Treasury markets.
• D) Under indirect intervention, the Fed would attempt to affect the dollar's value by indirectly influencing the factors that determine it, such as interest rates.
• E) All of the above are true.