Assume That the Dollar Has Been Consistently Appreciating Over a Long

question 70

Multiple Choice

Assume that the dollar has been consistently appreciating over a long period. The Fed decides to counteract this movement by intervening in the foreign exchange market using nonsterilized intervention. The Fed would

• A) buy dollars with foreign currency and simultaneously sell Treasury securities for dollars.
• B) buy dollars with foreign currency and simultaneously buy Treasury securities with dollars.
• C) sell dollars for foreign currency and simultaneously sell Treasury securities for dollars.
• D) sell dollars for foreign currency and simultaneously buy Treasury securities with dollars.
• E) none of the above

---

Definitions:

Alvin Toffler

An American writer and futurist known for his works discussing modern technologies, including the digital and the communication revolution, and their effects on culture, society, and the economy.

Agricultural Revolution

The significant transformation in agriculture that began in the 18th century, marked by improved techniques and tools that significantly increased food production.

Third Wave

A term used in different contexts; in sociology, it refers to the third phase of the feminist movement; in technology, it refers to the third era of computing and digital innovation.

Sustainability

Practices and strategies for maintaining ecological balance by avoiding depletion of natural resources.